150,000-ton monthly gas boost could revitalize struggling NLNG plant
Nigeria’s liquefied natural gas exports are poised for a substantial revival following a preliminary agreement between Seplat Energy and Nigeria LNG Limited (NLNG) that promises to inject more than 150,000 tons of gas monthly to the struggling NLNG plant.
The deal, representing a 12% increase over last year’s monthly average, marks just the second time that NLNG—a joint venture between Nigeria, Shell Plc, TotalEnergies SE, and Eni SpA—has secured gas from a third-party supplier. The arrangement comes as welcome relief to the plant, which has seen supplies plummet due to pipeline theft and infrastructure challenges.
Both sides are currently finalizing technical and commercial details, with gas expected to flow to the plant beginning in the third quarter, according to Effiong Okon, who heads the Seplat subsidiary operating the key gas project north of the facility.
Seplat has experienced a 50% surge in gas production following its acquisition of assets from the Nigerian unit of Exxon Mobil Corp. The NLNG accord provides a strategic outlet for its $700 million ANOH gas plant, which has remained idle since completion due to delays in a crucial east-west pipeline intended to transport its output.
“The deal represents a strategic convergence of need and opportunity,” observed 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 operate on a short-term basis pending completion of the delayed pipeline, positioning both companies to capitalize on immediate opportunities while maintaining flexibility for future arrangements.
Source: Oriental News
