By Sebastine Obasi
Nigeria’s quest for increased domestic gas utilization has received a boost the Nigeria Liquefied Natural Gas Limited, NLNG yesterday signed a 1.1 million tonnes per annum, MTPA, sales and purchase agreement, SPA, with three indigenous companies to facilitate domestic gas penetration.
Speaking at the event, the Managing Director of NLNG, Mr. Tony Attah stated that the agreement was part of NLNG’s commitment as a corporate entity, to unlocking gas utilization in Nigeria. The companies include Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited. He said, “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 which 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.
BIG congratulations to our Board of Directors and Shareholders for this demonstration of faith in the Decade of Gas vision, and commitment to the actualization of that vision.
Congratulations, too, to the Department of Petroleum Resources (DPR), who will no doubt play a critical role. Congratulations also goes to other stakeholders and corporate entities gathered here today. This is just the beginning, and our individual and collective efforts will be needed to make this journey a success.
“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.
“In addition to the Domestic LNG Scheme, we have the ongoing Train 7 project with 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.
“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, industrialisation and improved opportunities for all Nigerians, flying on the wings of gas. It is time for gas. “Congratulations to our Board of Directors and Shareholders for this demonstration of faith in the Decade of Gas vision, and commitment to the actualization of that vision.
“Congratulations, too, to the Department of Petroleum Resources (DPR), who will no doubt play a critical role. Congratulations also goes to other stakeholders and corporate entities gathered here today. This is just the beginning, and our individual and collective efforts will be needed to make this journey a success.”