Marketing and Sales Adminstration
Since October 1999 when the first cargo of Liquefied Natural Gas (LNG) was loaded for delivery to Montoir Terminal in France, NLNG has maintained its reputation as a safe, reliable, responsible and trusted supplier of LNG and Natural Gas Liquids (NGLs) worldwide. The NGLs comprise of Condensates and Liquefied Petroleum Gas (LPG). NLNG’s six-train complex with nameplate capacities of 22mtpa of LNG and 5mtpa of NGLs means that it has the capacity to safely load and deliver over 300 cargoes of its products annually.
Our Products
Liquefied Natural Gas (LNG)
NLNG currently has 20 long-term LNG Sale & Purchase Agreements (SPAs) executed with 9 buyers on a Delivered Ex-Ship (DES) basis.
NLNG has also executed about 51 Spot LNG Master Sale Agreements (MSA) with various counterparties across major LNG markets and emerging demand centres in order to enable the prompt sale and optimisation of both base and any excess production volumes on spot and term basis.
Deliveries of LNG are made under the relevant Agreements to Europe, the Far East, Greater Middle East, North America and South America, thus ensuring NLNG's position as a significant competitive LNG supplier. NLNG’s varied markets have been made possible through commercial diversion and optimisation opportunities explored from time to time with the Long-Term LNG Buyers as well as through spot FOB sales to several counterparties, leveraging the MSA platform.
With the first sets of SPAs from Trains 1 & 2 and Train 3 expiring from late 2021 to 2023/2024, the LNG volumes from these foundation Train projects have now been resold under new SPAs that would kick in once the existing SPAs expire. In a rapidly evolving gas and energy market, it is no surprise that the Trains1-3 remarketing and other commercial activities remain focused on offering the flexibility and reliability that address buyers' changing preferences on the one hand and ensuring continued optimal value for NLNG on the other.
Additionally, NLNG has renewed its focus on growth and expansion with a strong ambition to realise the Train 7 project which will raise the liquefaction capacity to 30MTPA.
Natural Gas Liquids (NGL)
NLNG produces high quality NGLs comprised of Liquefied Petroleum Gas (LPG – Propane and Butane) and Condensates as by-products of the natural gas liquefaction process. It currently has capacity to produce up to 5 million tonnes of NGLs per annum. Both products are sold for export on a Free on Board (FOB) basis to pre-qualified companies, including affiliates of NLNG’s shareholders. A significant portion, mainly butane, is also sold within Nigeria as domestic LPG under NLNG's Domestic Energy Initiative aimed at making clean and affordable energy available.
Domestic LPG Supply
For over 10 years, NLNG's intervention in the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, to the domestic market under the NLNG Domestic LPG (DLPG) Scheme has helped reduce the use of dirty fuel sources for cooking. It has also stimulated growth in the industry by guaranteeing LPG supply, availability, affordability and enabling the development of a value network for a sustainable ecosystem towards a better Nigeria.
Between 2007 and 2018, NLNG cumulatively supplied over 1,452kt of LPG to the domestic market, spurring a steady rise in annual domestic consumption in a market that was below 50kt per annum in 2007 to over 600kt per annum in 2018. To ensure steady supply of products, deliveries are made through NLNG's dedicated vessel chartered for the DLPG Scheme.
The ongoing DLPG market deepening strategy yielded some further dividends with the commencement of deliveries to Stockgap Terminal in Port Harcourt, as part of deliberate moves to encourage growth of the sector beyond Lagos and reduce the impact of congestion of the Lagos ports on deliveries into the market.
In continuous demonstration of its commitment to its vision of “helping to build a better Nigeria,” NLNG has committed to delivering 100% of its LPG production to the domestic market through Nigerian companies with whom it has signed Sales and Purchase Agreements (SPAs).
The Future
NLNG's commercial focus is on continuous repositioning for competitive edge and to ensure optimal incremental “Value and Business Growth”, leveraging a range of strategic portfolio management and optimisation mechanisms including cargo diversions, swaps, SPA reviews for value, etc.
In line with its profile as a growing organisation, NLNG will continue to consolidate its position as not only one of the major and reliable suppliers of LNG in the world, but equally a flexible and value-driven LNG supplier. In addition to this, NLNG will continue to help build a better Nigeria by supplying products to the country, including exploring domestic LNG supply opportunities as a potential way of helping to bridge the energy gap, specifically supporting the power sector.
Following the Final Investment Decision and the award and signing of Engineering, Procurement and Construction (EPC) contracts for Train 7, the next few years will be very challenging for NLNG as it works to safely deliver a new world class expansion within the context of a rapidly changing global energy landscape.
