THE nation’s gas utilization, received a major boost as the Nigeria LNG Limited, NLNG, signed Sales and Purchase Agreements, SPAs, with Asiko Energy and two other companies to deliver 1.1 million tonnes of Liquefied Natural Gas, LNG annually to the domestic market.
This is even as stakeholders have concluded plans to conduct the groundbreaking of the nation’s $12 billion LNG Train 7 project next week.
However, the agreements with Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited are expected to boost gas supply to power, industries, and domestic use.
Speaking at the event in Abuja, the Managing Director of Asiko Power Limited, Mr. Felix Ekundayo observed that though the deal took long in the making, it would revolutionize the gas supply market in the country. Also at the event Managing Director of NLNG, Mr. Tony Attah said the SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market.
Specifically, he said: “Our commitment, as a corporate entity, to unlocking gas utilization is now backed by the execution of Sales and Purchase Agreements (SPAs) to supply 1.1 Million Tonnes Per Annum (MTPA) 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.
“The execution of these SPAs follows a Domestic LNG (DLNG) Workshop was 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.”
He said: “With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organizations, we as a nation can stand with our head held high to be counted among major players. The government has demonstrated its readiness to take the gas sector to the next level by declaring this decade our nation’s Decade of Gas.
“We believe this will be the decade for us to leverage on our gas reserves to accelerate our power generation solutions through Gas-to-Power projects. It will be the decade when as a nation we stop reporting deaths from pollution through the use of wood and solid fuels as domestic energy sources. And it will be the decade for empowering local SMEs to take advantage of the various investment opportunities that the Decade of Gas will attract.”
Commenting on the LNG Train 7, he said: “addition to the Domestic LNG Scheme, we have the ongoing Train 7 project with the capacity to attract about $10bn in foreign direct investment. We are also looking to expand the LPG value chain by increasing our supply to the domestic market, guaranteeing LPG supply and enhancing its affordability, and enabling the development of a value network for a sustainable ecosystem.”
He added: “May I stress again that this is a collaborative effort, and the active participation of all stakeholders will be required for us as a nation to reach the Promised Land and to attain the dream of economic expansion, industrialization, and improved opportunities for all Nigerians, flying on the wings of gas. It is time for gas.”