NNPC, NLNG Sign Deal For $2.5bn Gas Supply
Nigerian National Petroleum Corporation (NNPC) and Nigeria Liquefied Natural Gas (NLNG) have sealed pact for upstream gas development projects to supply gas to NLNG train one to six.
Urging shareholders to accelerate the production capacity of the company beyond the upcoming train seven facility of the gas company, especially in a bid to take advantage of developments in the global LNG market, Group Managing Director of NNPC, Mele Kyari, who spoke at the signing ceremony said the new deal would help to resolve the issues around gas supply to the trains
He added that there was need to fast-track action on the process of bringing more trains on stream.“Here at NNPC, we are thinking beyond train seven; if your ambition is train seven. Actually, our thinking should be on what else we can do or what other projects we can work on as quickly as possible to take advantage of the enormous potential in-country. There is also the need for us to take advantage of what is happening in the global market and do things very differently. There are opportunities there and our company must move into those locations and we must move fast,” Kyari said.
According to him, the pre-payment gas supply agreement was a milestone which aligned with the Federal Government’s aspirations of monetizing the nation’s enormous gas resources, protecting the Federation’s investment in the NLNG, ensuring full capacity utilization (22mtpa LNG and 5mtpa NGLs) of trains one to six plants, generating employment, and providing new vistas of growth opportunities in the nation’s LNG sector.Also speaking at the ceremony, Managing Director of NLNG, Tony Attah, the deal would further the company’s business sustainability and competitiveness.
Attah urged for support to ensure that the Final Investment Decision on the train seven project taken this year, adding that the project was no longer an ambitious one in the light of developments in the global LNG market.
Meanwhile, the Nigerian Petroleum Development Company Limited (NPDC), an Upstream Subsidiary of the NNPC has reported a fire incident which occurred at Oil Mining Lease (OML) 20 at Egbema-West, Imo State earlier in the week.
NNPC’s Acting Spokesman, Samson Makoji, quoting the NPDC Managing Director, Mansur Sambo, said the incident was according to preliminary investigation a result of bunkering activity by vandals.The fire reportedly occurred in Well–18T, located within the flooded part of Abacheke Community.NNPC said report released by the Community Liaison Officer in charge of Abacheke Community indicated that no fatality was recorded.