The Nigerian National Petroleum Company (NNPC) Limited and a consortium of upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas (NLNG) Limited for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The 20-year agreements, which carry options for extension, were concluded on Friday at the NNPC Towers in Abuja.
Signatories to the deal include Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, First Exploration & Petroleum Development Company Limited, Shell Nigeria Exploration and Production Company (SNEPCo), NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions Limited, Oando Group, and Aradel Holdings.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the agreements as a milestone for the nation’s energy sector.
“These GSAs have opened up opportunities for the growth of our industry both locally and internationally. They are hinged on collaboration, synergies and shared opportunities. We need to leverage economies of scale and collective risk-taking if we are to attain the President’s Decade of Gas vision,” Ojulari said.
He commended recent policy interventions by the Federal Government, noting that executive orders issued by President Bola Tinubu had created a more supportive environment for investment.
“It is important to commend the President’s tremendous effort that has enabled the business through the issuance of executive orders targeted at gas development and the ease of doing business,” he added.
Ojulari reaffirmed NNPC’s commitment to accelerating implementation of the directives, pledging to work with partners to unlock more opportunities for gas production.
Managing Director of NLNG, Philip Mshelbila, hailed the deal as a turning point for the company and the gas industry.
“These agreements are a turning point in NLNG’s journey, restoring supply reliability and keeping us firmly on the path of growth and expansion. We could not have achieved this without the deliberate efforts of our shareholders and stakeholders,” he said.
According to him, the GSAs will boost local gas production capacity, enhance supply reliability, and support Nigeria’s industrialisation and economic growth agenda, while reinforcing the country’s role in the global energy market.
The agreements will secure feedgas for NLNG’s Bonny Island plant, underpin its expansion drive, and help address persistent supply constraints that have hampered both domestic utilisation and exports in recent years.
Nigeria holds over 200 trillion cubic feet (tcf) of proven natural gas reserves — the largest in Africa and ninth-largest globally. However, supply bottlenecks have limited domestic consumption and LNG exports, with NLNG’s six-train Bonny plant struggling in recent years to operate at full capacity.
Analysts say the new agreements mark a significant step towards bridging upstream gas shortages, strengthening Nigeria’s energy transition agenda, and advancing federal gas reforms aimed at driving industrialisation and economic prosperity.
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