Oando inks two gas supply deals with Nigeria LNG
Nigerian energy solutions provider Oando has signed two gas supply agreements with Nigeria LNG.
The deals are for the renewal of gas supply for the existing Trains 1-3 for a term of 10 years and for gas supply for the impending Train 7 for a term of 20 years.
Under the terms of the current agreement, the NAOC joint venture made up of NNPC/NAOC/Oando has a total supply obligation of 850 mmscf for Trains 1–6. The JV is specifically responsible for supplying a daily contract quantity (DCQ) of 344.6 mmscf/d for Trains 1-3 and 505 mmscf/d for Trains 4-6, making the NAOC JV the second-largest gas supplier to NLNG.
The first GSA is a renewal of the gas supply terms for Trains 1-3, Oando noted in its statement.
In addition to the JVs current supply to trains 1-6 and under the terms of the second agreement the JV will be responsible for supplying a DCQ of 294.7 mmScf/d for Train 7.
Train 7 is expected to come on stream in 2024, and will bring the JV’s total supply obligation to 1.1 Bcf.
The execution of these agreements also effectively monetizes approximately 3.3 Tcf of gas for the NAOC JV of which 666 Bcf will be net to Oando.