NLNG To Receive More Gas From Seplat With New Deal

The Nigerian Liquified Natural Gas Limited (NLNG) is hoping on improved gas supply as the company opens talk with Seplat Energy.

The NLNG has suffered supply hitches following theft in oil and gas production sector, is set to see gas supplies jump once a deal with Seplat Energy goes into effect, according to Bloomberg.

Under the terms of a preliminary agreement, Seplat will send more than 150,000 tons of gas a month to the Nigeria LNG Ltd. plant, said Effiong Okon, who heads a Seplat subsidiary that operates a key gas project north of the facility. That’s more than 12 per cent higher than last year’s monthly average.

Such an increase would be a major boost to the plant, which has seen its gas supplies plummet as gangs of thieves tap the pipelines that feed the site. It’ll be just the second time that NLNG a joint venture between Nigeria, Shell Plc, TotalEnergies SE and Eni SpA has received gas from a third party.

Both sides are now working out the technical and commercial details of the deal, according to Okon, who expects gas to start flowing to the plant in the third quarter.

Seplat has seen gas production rise by 50 per cent after acquiring assets from the Nigerian unit of Exxon Mobil Corp. The NLNG accord would bring much-needed revenue to its $700 million ANOH gas plant, which has been idle since completion following delays to a key east-west pipeline due to take its output.

The deal “represents a strategic convergence of need and opportunity,” said Katlong Alex, an analyst at the African Energy Council. It “enables Seplat to overcome infrastructure limitations, while helping NLNG tackle its persistent gas supply issues.”

The agreement will be “short term,” pending completion of the pipeline, Okon said but NLNG didn’t respond to a request for comment.