The Nigerian National Petroleum Corporation (NNPC) has signed a $2.5 billion pre-payment agreement with the Nigeria Liquefied Natural Gas (NLNG) for upstream gas development projects to supply gas to Trains 1 to 6 of the plant.
The Group Managing Director of NNPC, Mele Kyari, at the signing, urged shareholders to expedite work and expand production capacity beyond Train 7 to take advantage of the huge opportunities in the global LNG market.
The signing of the gas supply pre-payment agreement was witnessed by the Country Chairman of Shell Companies in Nigeria, Osagie Okunbor, and representatives of Total, Eni/NAOC, amongst others.
The GMD said the agreement was significant as it would help in resolving the issues around gas supplies to Trains 1 to 6 of the plant.
He said there was a need to fast-track action on the process to bring more trains on stream.
Here at NNPC, we are thinking beyond Train 7. If your ambition is Train 7, then you have to work hard to change that, Mr Kyari told the shareholders.
Despite being a huge success story as a company, the GMD said the NLNG must go beyond its current achievements and initiate other viable projects capable of generating better returns on investment.
He said the partners should be concerned on what other projects they can quickly deliver to take advantage of the enormous gas potential in the country.
Besides, he said there was a need for the partners to take advantage of what is happening in the global market and do things very differently.
”There are opportunities in the global market our company must move fast into those locations, he said.
The official said the pre-payment gas supply agreement was a milestone which aligned with the Federal Governments aspirations of monetising the nations enormous gas resources.
He said the agreement will protect the federations investment in the NLNG; ensure full capacity utilisation, consisting 22 metric tons per annum (MTPA) of LNG and 5 MTPA of NGLs of Trains 1-6 plants; generate employment, and provide new vistas of growth opportunities in the nations LNG sector.
Earlier in his address, the Managing Director of NLNG, Tony Attah, said the signing of the gas supply pre-payment agreement was a significant step towards ensuring the companys business sustainability and competitiveness.
Mr Attah called for support to ensure the Final Investment Decision on the Train 7 Project is taken this year without fail.
He said the project was no longer an ambitious one in view of recent developments in the global LNG market.
Author: Bassey Udo