NNPC, NLNG Sign $2.5bn Pre-Payment Deal For Gas Projects

The Mele Kyari-led management of the Nigerian National Petroleum Corporation (NNPC) has signed a $2.5bn pre-payment agreement with Nigerian Liquefied Natural Gas company(NLNG) for upstream gas development projects.

The project agreement was disclosed by the corporation on its official twitter page.

The agreement, which was signed at the NNPC towers on Friday is to deliver additional gas to the NLNG Trains 1-6 on the balance sheet of the NLNG.

Describing the pre-payment agreement as a very significant achievement, the NNPC said it will pave way to Final Investment Decision on T7.

Earlier this month NLNG said it had moved closer to an investment decision on the long-awaited Train 7 project to expand its liquefied natural gas plant on Bonny Island.

Recall that Kyari had earlier said the October Train-7 FID project was a done deal, noting that the focus of the gas company should be on what next to be done beyond Train7 to expand its operations.

The NLNG managing director, Tony Attah had explained that the  8Million-Tones Per Annum (MTPA) Train -7 project is designed to expand the company’s production capacity from 22- 30MTPA adding that project would also generate a projected 12,000 jobs with massive spin-offs on the nation’s economy.

NLNG, which produces liquefied natural gas (LNG) for export, is owned by state-run Nigerian National Petroleum Corporation (NNPC) and foreign energy firms Royal Dutch Shell, Total and ENI.