NLNG Restates Commitment to Fulfilling LNG Supply Contracts with Buyers

Peter Uzoho

The Nigerian Liquefied Natural Gas (NLNG) Limited has reiterated its commitment to fulfilling all LNG supply contracts it has entered into with its buyers across the world.

The company maintained that it supplies LNG in line with the different Sales and Purchase Agreements (SPAs) with its buyers in compliance with all existing local and international regulations, adding that it operates its business openly and transparently, according to world-class standards and industry best practices.

NLNG stated this in a note sent to THISDAY yesterday in response to some recent reports claiming that deferrals, defaults and cancellation of cargoes were creating an in-house crisis and market tension for the company and that more than 20 LNG cargoes had suffered deferrals despite demand surge in the international market.

But the company in the note signed by its General Manager, External Relations and Sustainable Development, Mrs Eyono Fatayi-Williams, stated that it was fully committed to sustaining its reputation of being a trusted and reliable supplier of LNG globally and would not take any action to endanger this commitment.

The statement read, “Following some recent reports in the media, NLNG wishes to clarify that as a major player in the global LNG industry, it is focused on fulfilling its contractual commitments.

“NLNG supplies in line with the different Sales and Purchase Agreements (SPAs) with its buyers and complies with all existing local and international regulations.
“Furthermore, the Company operates its business openly and transparently, according to world-class standards and industry best practices.

“NLNG is fully committed to sustaining its reputation of being a trusted and reliable supplier of LNG globally and will not take any action to endanger this commitment.”

NLNG is a Join Venture (JV) company owned by four shareholders including the Federal Government of Nigeria represented by the Nigerian National Petroleum Corporation (NNPC) with 49 per cent share, Shell Gas B.V. (25.6 per cent), Total Gaz Electricite Holdings France (15 per cent), and Eni International N.A. N.V. S.àr.l (10.4 per cent).

NLNG is currently building its seventh train at its Bonny Island complex, aimed at raising the company’s production capacity from the existing 22 million tonnes per annum (mtpa) to 30mtpa, representing 35 per cent increase.