The Nigerian National Petroleum Company Limited (NNPC Ltd.), along with several upstream gas producers, has signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Ltd (NLNG) for the delivery of 1.29 bcf/d (around 13 bcm/year) of feedgas.
These agreements, which include extension options, are designed to support NLNG’s liquefaction operations and involve key partners such as Shell Nigeria, as well as Nigerian independents Aradel Holdings and First E&P. The contracted gas volumes will increase gradually over time to supply the US$10bn Train 7 project at NLNG’s Bonny Island liquefaction plant in Rivers State, which is now approximately 80% complete.
Construction of Train 7 began in June 2021. Once operational, the train will add 8 Mt/year of LNG capacity (nearly 11 bcm/year). It constitutes a more than 35% increase from the plant’s current output of 22 Mt/year (about 30 bcm/year) to a total of 30 Mt/year (over 40 bcm/year). The new train is expected to be completed over a five-year period.
NLNG is a joint venture owned by NNPC Ltd. (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni (10.4%).