Gas Supply Set To Increase In Nigerian Markets Following Seplat’s Deal With NLNG

• Nigeria's market supply of gas is set to increase in the coming months as Seplat Energy has entered a supply deal with NLNG
• Seplat recently increased its production assets with the acquisition of the Nigerian unit of Exxon Mobil
• The deal with NLNG will reverse earlier challenges the company faced with gas supply

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Nigeria’s cooking gas market is set to experience increased supply in the coming months, as the Nigerian Liquefied Natural Gas (NLNG) has received increased gas supply for its gas plant operations.

The company’s agreement with Seplat Energy also promises to raise its gas supply further by up to 12%, once the terms of the agreement takes effect.

NLNG, a joint venture between Nigeria, Shell Plc, TotalEnergies SE and Eni SpA, had previously suffered recurrent fuel theft incidents and pipeline vandalism, cutting down gas supplies to its plants and affecting overall production.

When the terms of the preliminary agreement takes effect, NLNG plant will be receiving over 150,000 tons of gas from Seplat Energy, a quantity that an executive of the company confirmed to be 12% more than the monthly average gas supply in 2024.

Recall that Seplat Energy acquired Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation, increasing its gas production by up to 50%.

Following the completion of its $1.28 billion acquisition of ExxonMobil's onshore oil and gas assets in Nigeria, Seplat Energy Plc took steps to reactivate over 400 dormant oil wells to add to an already active 200 oil wells.

Seplat enters new deal with NLNG

According to the Managing Director, ANOH Gas Processing Company (AGPC), Effiong Okon, explained that Seplat and NLNG are working out the technical and commercial details of the agreement so that supply can fully commence in Q3, 2025.

NLNG will thus be receiving gas supplies from a third party, for the second time in its history.

Seplat Energy’s deal with NLNG is one that analysts described as a strategic convergence of need and opportunity.

Katlong Alex, an analyst at African Energy Council (AEC), said that the deal enables Seplat to help NLNG to tackle its gas supply problems, while using it to overcome its infrastructure limitations and increase revenue for the $700 million ANOH gas plant.

Recall that Seplat Energy refunded N1.58 billion to the federal government, as part of outstanding payments from oil companies.

This was part of about N11 billion that the National Assembly successfully recovered from oil companies after reviewing the report from the Auditor-General of the Federation.

NLNG warns about pending increase in gas prices

In related news, Legit.ng earlier reported a pending gas crises for Nigerians in the face of diminishing supply to the NLNG.

Pipeline vandalism caused a drop in the company's gas supply, leaving it with only about 20% of its actual gas supply needs.

With the reduction in gas supply, the company warned that cooking gas could become scarce and expensive.

Source: Legit.ng