NLGN-Signs-SPA-for-Domestic-GAS-in-Nigeria-seefinish

Domestication of Natural Gas: NLGN Signs SPA for Nigeria

NLGN Signs SPA for Nigeria. NLNG will be serving Nigerians with natural gas using its virtual pipeline solution. The production of natural gas will increase by millions of Metric Tonnes to support both international and local demands. Nigeria will experience a growth in alternative uses of Liquified Natural Gas for electrical power supply and as automotive fuel. The process of domestication and local supply will be handled by partnering DLNG’s as represented in NLGN Signed SPA for Nigeria.

NLGN Signs SPA for Nigeria

Domestication of Natural Gas in Nigeria: NLGN Signs New Sales and Purchase Agreement (SPA) with Pioneer Domestic LNG (DLNG) Partner and Counterpart Companies

Domestic LNG Poineering Companies


NLGN Signed SPA: Expected Uses of Domestic LNG

  • Transportation / Automotive Fuel substitute to PMS & AGO.- Consumer Supply Model will use colocation of NLG stations in fuel stations. The current cars will require little modifications with additional devices to allow them to be able to use gas as fuel. LNG Storage Hub will be placed at various states to reduces supply distance.
  • Electricity Supply Uplift will also be served using the NLNG Virtual Pipeline Initiative.
  • The use of Liquified Petroleum Gas (LPG) helps lessen environmental pollution problems because it is a cleaner fuel.

Nigeria Natural Gas Statistics

  • Nigeria ranks 38th in the world for natural gas consumption, accounting for about 0.5% of the world’s total consumption of 132,290,211 MMcf. Nigeria consumes 3,192 cubic feet of natural gas per capita every year (based on the 2017 population of 190,873,244 people), or 9 cubic feet per capita per day. -(Woldmeterinfo)
  • Gas Reserves: 180,000,000 MMCf (9th in the world with most of it in the Niger Delta Region)
  • Gas Production 3,009,650 MMCf (12th in the world)
  • Gas Consumption 664,628 MMCf (38th in the world)

Noteworthy Answers to Questions

  • The pricing is of commercial scale not a subsidy plan for Nigerians.
  • The product will be transported and supplied with shipping as indicated within the SPA.
  • The goal is to electrically power Nigeria and Africa using gas.
  • The challenges will be on infrastructure
  • NNPC (Managing the Nigeria Shareholding Stake), DPR (provides Public-Private Regulatory Plan), DLNG (Handles Local Supply), NLNG (International Supply).

Related Resources

Back to Top

Leave a Reply

Your email address will not be published.