The NNPC on Friday in Abuja signed a modified carry agreement with Nigeria Agip Oil Company (NAOC) to finance â€œTrainÂ 4â€™â€™ and â€œTrain 5″ of the Nigerian Liquefied Natural Gas (NLNG) project.The project, which is expected to cost 473.3Â million U.S. dollars (about N71 billion), would guarantee gas supply of 131 million metric standard cubic feet ofÂ gas per day to the LNG plant trains.
The Group Managing Director (GMD) of NNPC, Mr Mohammed Barkindo, who signed onÂ behalf of the corporation, said at the event that NAOC would, under the agreement, finance in full (100 per cent)Â NNPCâ€™â€™s portion of the project cost, estimated at 284 million dollars (about N42.6 billion).
Barkindo described theÂ agreement as a milestone in the history of joint venture agreements in the country.He commended NAOC for agreeing toÂ finance the huge project despite the current liquidity crisis in the oil and gas industry caused by the globalÂ financial meltdown.He noted that the terms of the agreement were competitive; stressing that very few creditorsÂ could match the terms of the agreement with NAOC. â€œWe are proud of the performance of the NLNG project despite theÂ shortfall in gas supply,â€ he said. Barkindo said that the project was in line with the Gas Master Plan, as it wouldÂ maximise gas utilisation, reduce gas flare and support gas supply to the domestic market.The GMD, however, said thatÂ the gas delivered under the project would be treated in dedicated LNG
plants. Barkindo gave an assurance that the development of â€œTrain 4â€™â€™ and â€œTrain 5â€™â€™ of NLNG project would notÂ hamper the Federal Governmentâ€™s policy of making adequate gas available for the power sector. He noted that NAOC wasÂ one of the multinational oil companies which met their commitments under the Domestic Gas Supply Obligation.In hisÂ remarks, the Managing Director of NAOC, Mr Ciro Antonio Pagano, said that the company had consistently remainedÂ committed to Nigeriaâ€™â€™s development aspirations. He noted that the agreement was the first he would be signing sinceÂ his assumption of office three months ago.â€œI am willing to sign more of these mutually beneficial agreements inÂ future,â€ Pagano said. Barkindo and Pagano commended the negotiating committees of NNPC and NAOC for a job well done.