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NNPC said in a statement that its unit NNPC Gas Marketing, and its unincorporated JV partner, NIPCO Gas, have executed a gas sale and purchase agreement (GSPA) with Ssonic.
Under the terms of the agreement, the NGML-NIPCO UJV will supply 80 million standard cubic feet (mmscf) per day of natural gas to the Ssonic LNG plant for a period of 20 years, it said.
NNPC said the gas supply agreement is part of its efforts to boost domestic gas utilisation for industrial and economic growth of the nation and promote the use of gas as a cleaner and cheaper fuel.
The firm di not provide further information.
In January, NNPC and its partners held a groundbreaking ceremony for five small-scale LNG plants.
The five small-scale liquefaction, storage, and distribution projects are Prime LNG, NGML/Gasnexus LNG, Bua LNG, Highland LNG, and LNG Arete.
NNPC has stakes in three of the five mini-LNG plants (90 percent in Prime LNG, 50 percent in NGML/Gasnexus LNG, and 10 percent in BUA LNG), while Highland LNG and LNG Arete are developed by other private companies.
The plants have a combined capacity of 97 million standard cubic feet of gas per day (mmscf/d).
NNPC’s LNG business
NNPC has a 49 percent stake in Nigeria LNG, the operator of the six-train 22 mtpa facility on Bonny Island.
Besides NNPC, other partners are Shell (25.6 percent), TotalEnergies (15 percent), and Eni (10.4 percent).
Nigeria LNG is also adding the seventh production unit at the Bonny Island plant.
The NLNG Train 7 project consists of the construction of one complete LNG train and one additional liquefaction unit. The project also includes other associated utilities and infrastructures.
The new unit will add around 8 mtpa of capacity to the Bonny Island facility for a total of about 30 mtpa.
Last year, NNPC said it was also in talks with investors to revive two LNG export projects, Brass and Olokola.
In addition to onshore projects, NNPC is also working on FLNG projects.
NNPC and Golar LNG are working on a floating LNG project offshore Nigeria’s Niger Delta, while NNPC also has a 20 percent stake in UTM Offshore, which is developing Nigeria’s first FLNG project.