NLNG Ramps Up Planned 1.1m Tons Per Annum LNG Supply to Nigerian Market

Peter Uzoho

The Nigerian Liquefied Natural Gas (NLNG) Limited has expressed commitment to actualising its plan of supplying LNG to the Nigerian market as part of its contribution to the growth of domestic gas utilisation in the country.

The company said the offtakers of the product -Asiko Power Limited, Bridport Energy Limited, and Gas-Plus Synergy Limited, were currently constructing their receiving infrastructure in Apapa and Lekki Free Zone, Lagos in readiness for the commencement of supply to them.

The Manager, Common Facilities Assets, NLNG, Mr. Lateef Biobaku, gave the latest hint while responding to THISDAY’s question during a panel session at an oil and gas conference in Lagos.

NLNG had announced in June 2021 that it was going to commence domestic LNG supply in July 2022, adding that it had signed Sales and Purchase Agreements (SPAs) with three power firms as offtakers, which were to set up receiving infrastructure to enable the commencement of the project.

The then Managing Director of NLNG, Mr. Tony Attah, who disclosed the plan during the signing of the SPAs in Abuja, had stated that the initial volume of supply would be 1.1 million tonnes per annum (mtpa).

He had explained that the execution of the SPAs followed a Domestic LNG (DLNG) workshop held in November 2019 to stress-test the delivery model with industry stakeholders and a series of engagements to identify suitable actors to co-create the initiative and stimulate market interest for potential off-takers.
 “It is my pleasure to announce that our commitment to unlocking gas utilisation is now backed by the execution of Sales and Purchase Agreements to supply 1.1 million tonnes per annum of LNG on DES basis to Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited.

“The SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market, “Attah had said.
But providing updates on the project, Biobaku said: “We remain committed to delivering LNG to the Nigerian market. Our partners are currently constructing their receiving facilities. They’ve suffered some delays as a result of what you know is happening in the industry -steel import and the rest of them.

“But nevertheless, we are working with them to make sure that they deliver to their promises. Coincidentally, a team of NLNG officials are currently in Lagos going to visit those facilities to make sure that everything is on track. They have been to Apapa and would also be going to the Lekki Free Trade Zone, just to make sure that those companies fulfil their promises.”

The company currently has a six-train LNG processing plant in Bonny Island, Rivers State, with total 22 million tones per annum (22mtpa) and 5mtpa of Natural Gas Liquids (NGLs) capacity. It is also building the seventh train capable of raising its LNG production capacity to 30mtpa.

NLNG has dedicated 100 per cent of its Liquefied Petroleum Gas (LPG) production to the Nigerian market in order to help encourage local utilisation of the cleaner energy source, reduce importation of the product and save foreign exchange.