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Gas Supply

Feedgas is produced by the Joint Ventures (JVs) from various concession areas in the Niger Delta—from onshore and offshore fields—and supplied to NLNG under a long-term Gas Supply Agreement (GSA) with each JV.

The GSAs ensure effective gas supply to NLNG’s plant throughout the life of the respective projects.
SPDC-JV currently supplies feedgas from a number of fields including Gbaran Ubie, Soku, Bonny (on-shore), Bonga, and EA (off-shore) supply facilities, each receiving gas from a wide range of oil and gas fields. 

Additionally, under a special supply arrangement with the SPDC-JV, an indigenous marginal field concessionaire/operator — Niger Delta Petroleum Resources (NDPR) —supplies natural gas to NLNG from its Ogbelle-Obumeze oil and gas process facilities. At 35mmscf/d, it currently supplies 1 per cent of NLNG daily feedstock, but with potential to grow.

The NAOC-JV supplies gas to NLNG from its Obiafu-Obrikom (OB-OB) Integrated Gas Supply centre which receives gas from a wide range of fields including Idu, Akri, Kwale, Irri, Oshie, Tebidaba and Ebocha oil and gas fields.

The TEPNG-JV derives gas supplied to the plant from the onshore Obite, Ibewa and Obagi fields. Additionally, natural gas rich in liquids is supplied to NLNG from its off-shore Amenam and Akpo platforms. In December 2014, TEPNG commissioned delivery of some 35 to 40mmscf/d of associated gas from its Ofon project through its Amenam offshore plant as part of its are reduction strategy.

The recently upgraded supply capacity of the TEPNG Obite plant, with the completion in 2016 of its 42-inch diameter by 45km gas transmission pipeline (Obite Ubeta Rumuji – OUR), increased gas supply to NLNG plant from 350mmscfd to 530mmscfd.  

At present, with six trains in full operation, the total gas requirement of the company's Bonny Island natural gas liquefaction plant is about 3,500 mmscf/d (3.5 Bcf/d).

Currently, gas is supplied to NLNG complex through six independent Gas Transmission Systems (GTS). The GTS-1, -2, -4 and Bonny Non-Associated Gas (BNAG) piping systems are onshore, while GTS-3 and -5 are off-shore lines.

Gas in Nigeria

Nigeria is blessed with abundant reserves of both associated and non-associated gas (AG and NAG), estimated to be in excess of 202 Trillion (standard) cubic feet (Tcf).

The country is ranked ninth in proven natural gas reserves in the world. The natural gas reserves are estimated to be sufficient to sustain current production rates for up to 60 years.

Geologists believe that there is a lot more gas to be found in Nigeria (potentially up to 600Tcf), if companies deliberately explore for gas, as opposed to finding it while in search of oil.

The Nigeria government aims to eliminate gas flaring associated with the production of oil, and NLNG continues to play a significant role in this. 

NLNG is poised to help in further reducing upstream gas flaring with the anticipated improvements in the collection of associated gas by gas suppliers and the recent taking of Final Investment Decision (FID) and the award of Engineering, Procurement and Construction (EPC) contracts for Train 7 by NLNG’s shareholders which will enhance processing capacity of NLNG’s Bonny Plant Complex.

Other demands on the use of Nigeria's gas are for domestic power generation, domestic utilities, fertilizer and petrochemical industries, as well as export of NGL, in addition to other gas projects such as those embarked upon by the West African Gas Pipeline Company Limited (WAGPCo), and future LNG projects. The NLNG six-Train complex is the biggest gas consumer and exporter in Nigeria with its current daily consumption of almost 3.5 bcf/d, equivalent to more than the total daily consumption of industrialized countries like The Netherlands and Australia.