223 Companies Jostle for NNPC Natural Gas Liquids Bid

No fewer than 223 companies have indicated interest for the Nigerian National Petroleum Corporation (NNPC) 2019-2021 natural gas liquids (NGLs) bid.

The corporation opened 2019-2021 NGLs bid in Abuja on Tuesday, explaining that through a transparent competitive bidding and evaluation process, it intends to enlist companies with proven investments in gas utilisation, storage, distribution and marketing infrastructure.

Group Managing Director, NNPC, Dr. Maikanti Kacalla Baru, in his welcome address, stated that the occasion marked the beginning of yet another landmark event in the corporation’s bid to maximise the value of the nation's natural gas liquid resources for the benefits of Nigerians and other stakeholders.

Baru noted that as a corporation, "We have 223 companies competing and there are more local participants this time around. Our current pursuit is to continuously grow our domestic gas supply and utilisation while also maximising value from our unutilised knock-off condensates and Natural Gas Liquid resources."

According to him, NNPC's strategic focus in the coming months was to expand domestic LPG supply from established local sources while also encouraging investments in storage, marketing and distribution infrastructure.

"Through a transparent competitive bidding and evaluation process, we intend to enlist companies with proven investments in Gas utilisation, storage, distribution and marketing infrastructure," he said.

The NNPC GMD, who was represented by the corporation’s Chief Operating Officer, Gas and Power, Sa'idu Mohammed, stated that the 2019-2021 NGLs Tender Objectives include: "To engage reputable qualified companies to off-take Natural Gas Liquids (NGLs) for the domestic and international markets.

It also seeks to ensure that the selection of off-takers is aligned with tested transparent and accountable procedures in compliance with the Public Procurement and Nigerian Content Acts.

He stressed that in addition to these objectives, "it is our intention to sustain transparency in all our processes and select the best Off-takers through a robust mix of big international players with strong Nigerian gas sector focus companies to ensure supply reliability and local capacity development."

Baru noted that to stimulate investments in gas storage, marketing and distribution, it is critical at this point to highlight that ultimately, gas utilisation whether locally or internationally delivers value optimisation to the federation.

He said that the Corporation was assuring everyone that the bid would be given a fair consideration.

"What we are witnessing here is part of the contract that we are trying to bid. We have started this many years back, about 2-3 years and to make sure that in whatever we do is when known and transversally been done and in most efficient way in line with the PPP.