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NNPC, NLNG sign $2.5bn gas supply deal

To engender a smooth supply of gas to NLNG train one to six, the nation’s foremost integrated oil and gas corporation, Nigerian National Petroleum Corporation (NNPC) and the Nigeria Liquefied Natural Gas (NLNG) have inked a new deal for upstream gas development projects.

Group Managing Director of NNPC, Mele Kyari, who spoke at the signing ceremony said the new agreement would aid the resolution of issues around gas supply to the trains, 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.

Commenting further, he said: “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 a 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.”

“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, Kyari added.

Managing Director of NLNG, Tony Attah, who also spoke at the event, said 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.

TheConscience

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