Aradel Holdings, one of the leading local oil and gas operators in Nigeria, has signed a gas supply agreement (GSA) to deliver additional feed stock volumes to the Nigeria LNG company (NLNG) in Rivers state.
In a press statement issued on Monday and seen by Energy in Africa, Aradel confirmed the agreement was renewed as part of its commitment to continue “delivering sustainable energy and unlock the full potential of its assets.”
The gas will be delivered through the Shell Nigeria Gas (SNG) and NNPC Gas Marketing Limited (NGML) partnership to NLNG’s plant in Bonny Island, Rivers State.
“This milestone strengthens Nigeria’s energy transition agenda and supports the federal government’s gas reforms aimed at enhancing energy security and driving economic growth”, the company said.
Since commissioning its 100 million cubic feet per day (mmcf/d) gas processing plant in 2012, Aradel says it has continued to “harness and commercialize its gas resources, contributing to domestic gas supply.
Aradel is the first non-JV gas supplier to NLNG and has since 2012 eliminated routine gas flaring at its Ogbele facility.
Like Aradel, another indigenous company, Seplat Energy, also plans to end gas flaring across its entire onshore operations before 2026.
Aradel’s acquisition and expansion drive
Last year, Aradel acquired significant stakes that have boosted its hydrocarbon production and revenues in several assets including First Oil, Olo and the Olo West Marginal Fields from the TotalEnergies/NNPC JV.
But the grand of them all were a 5.14% equity stake in Chappal Energies, and the 100% acquisition of Shell’s onshore assets for $2.4 billion alongside four other partners in a consortium known as Renaissance Energy Group.
The Renaissance Group comprises:
- Aradel Holdings
- First E&P
- ND Western Ltd
- Waltersmith Group
- Petrolin Group (an international partner)
The consortium’s CTO Abdulraham Mijinyawa earlier this month told industry executives that they have grown oil and gas production by over 40% from the asset just months after the acquisition.
Although the actual volume isn’t disclosed, the Aradel–NLNG gas deal is believed to form part of the broader 1.29 billion cubic feet (Bcf) per day gas supply contract signed between NLNG and multiple third-party suppliers, including NNPC, TotalEnergies, and Shell.
