Liquefied Natural Gas (LNG) is super-cooled natural gas, chilled to -160 degrees Celsius to condense and reduce volume. Reduced volume allows for cost-effective transportation over long distances.
NLNG produces 22 million tonnes per annum (MTPA) of LNG from its six-train plant on Bonny Island.
NLNG currently manages sixteen (16) long term LNG Sales Purchase Agreements (SPAs) executed with 11 buyers on a Delivered Ex-Ship (DES) basis. These buyers include Enel, Gas Natural, Botas, GDF Suez, GALP Gas Natural, BG LNG, Endesa, ENI, Iberdrola, Shell Western LNG BV and Total Gas and Power Ltd.
The Long Term LNG buyers take delivery of their volumes in receiving facilities spread across the Atlantic Basin in countries such as Spain, France, Portugal and Italy in Europe, Turkey, Mexico and the United States of America.
In recent times, NLNG cargoes have been delivered to the Far East, Middle East, South America and the United Kingdom through existing customers and via spot Master FOB agreements with several companies. Volumes have gone as far as Japan, South Korea, Taiwan, China, India, Kuwait, Brazil and Wales. This has positioned the company as a global player in the gas industry.
Natural Gas Liquids
Known as Natural Gas Liquids, high quality Liqueﬁed Petroleum Gas (LPG) and Condensate (Natural Gasoline) are by-products of the natural gas liquefaction process.
NLNG currently produces in excess of 1.5 and 1.0 million tons per annum respectively of Condensate and LPGs per annum. 75% of both LPG (Propane & Butane) and Condensate are sold on Free on Board (FOB) basis to its shareholders on equity basis using a matching mechanism on a price set by a competitive tender, with prequaliﬁed companies taking up the remaining 25% of the product volume.
Domestic LPG Supply
NLNG commenced supply of LPG to the Nigerian domestic market in 2007. That ﬁrst NLNG LPG cargo into the domestic market was discharged at Apapa jetty on December 26.
At the moment, NLNG has signed Sales and Purchase Agreements (SPAs) with 15 off-takers (all Nigerian companies) in which the company is committed to deliver up to 350,000 tonnes of LPG into the Nigerian market annually, in line with the commitment to grow the domestic LPG market in Nigeria.
The LPG Domestic Supply scheme, which has been an outstanding success, has led to a signiﬁcant reduction in the end-user price of LPG in the domestic market.