The Nigerian Liquefied Natural Gas (NLNG) Limited is poised to increase its gas supply by over 12%, following a strategic deal with Seplat Energy, marking a major step toward stabilising operations at its Bonny Island gas plant, which has been plagued by supply disruptions due to pipeline vandalism.
The boost comes through a preliminary agreement that will see Seplat deliver over 150,000 tons of gas monthly to NLNG, according to Effiong Okon, Managing Director of ANOH Gas Processing Company (AGPC) a Seplat subsidiary. The new supply figure exceeds last year’s average monthly volume and could begin flowing in the third quarter of 2025, pending technical and commercial finalisation.
The agreement follows Seplat’s acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil, which significantly ramped up its production capacity by 50%. The deal will provide much-needed revenue for the $700 million ANOH gas plant, which has remained idle due to delays in the completion of a critical east-west pipeline meant to evacuate gas from the facility.
“This deal represents a strategic convergence of need and opportunity,” said Katlong Alex, analyst at the African Energy Council (AEC). “It enables Seplat to overcome infrastructure limitations while helping NLNG tackle its persistent gas supply issues.”
If finalised, this will be only the second time in NLNG’s history that it receives gas from a third-party supplier, breaking its traditional reliance on its joint venture partners: the Nigerian government, Shell Plc, TotalEnergies SE, and Eni SpA.
The agreement is intended to be short-term, bridging supply gaps until the east-west pipeline is completed. NLNG has not officially commented on the deal as of the time of reporting.
Oil Spill Forces Shutdown in Rivers State
Meanwhile, in a separate development, Renaissance Africa Energy Company Limited which recently acquired Shell’s onshore assets has shut down production on its Okordia–Rumuekpe pipeline in Rivers State following a crude oil spill.
The spill was detected on Monday by local volunteers from the Youths and Environmental Advocacy Centre (YEAC-Nigeria) in Ikata, Ahoada East LGA. The pipeline carries crude to the Rumuekpe manifold, a key route for exports via the Bonny terminal.
While the company has not disclosed the scale or cause of the spill, YEAC-Nigeria suspects third-party interference, a common issue in Nigeria’s Niger Delta, where vandalism and theft frequently damage oil infrastructure and devastate local ecosystems.
Renaissance has halted pipeline operations, notified regulators, and is coordinating a Joint Investigation Visit (JIV) with government officials and community representatives.
