Key points
- NNPC Ltd. has signed six strategic agreements to expand domestic gas utilisation and support industrial growth.
- The deals include partnerships with Ajaokuta Steel, UTM FLNG, Chevron, AGPC and NEPL.
- A 20-year gas supply agreement will support the revival of the Ajaokuta Steel Complex.
- The agreements are expected to strengthen Nigeria’s gas transportation network and increase gas supply to industries and power plants.
Main story
The Nigerian National Petroleum Company (NNPC) Ltd. has signed six strategic agreements with industry partners aimed at expanding domestic gas utilisation, strengthening energy security and advancing Nigeria’s gas-based industrialisation agenda.
The agreements were executed on the sidelines of the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja on Tuesday and comprise a Memorandum of Understanding (MoU), a Gas Sale and Aggregation Agreement (GSAA), a Gas Sale Agreement (GSA) and three Network Entry Agreements (NEnAs).
Speaking at the signing ceremony, NNPC Group Chief Executive Officer, Bashir Ojulari, described the agreements as an important milestone in delivering the Federal Government’s vision of using natural gas to drive industrial development and economic transformation.
According to him, the agreements will unlock additional domestic gas supplies, strengthen implementation of the Nigerian Gas Transportation Network Code and reinforce gas as a catalyst for long-term economic growth.
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation. Gas is not only a source of revenue and profit, but also the hydrocarbon with the greatest potential to transform Nigeria’s economy,” Ojulari said.
He added that the partnerships reflected NNPC Ltd.’s commitment to transparency, operational efficiency and collaboration while promoting local content, improving energy security and attracting investment across the gas value chain.
One of the centrepieces of the agreements is the partnership with Ajaokuta Steel Company Ltd. (ASCL), where both organisations agreed to collaborate on reviving the Ajaokuta Steel Complex and expanding domestic gas utilisation.
The MoU also provides a framework for supporting local production of steel pipes required for strategic energy infrastructure, including the African Atlantic Gas Pipeline (AAGP) and the third phase of the Escravos-Lagos Pipeline System (ELPS).
In addition, NNPC Exploration and Production Ltd. (NEPL), the Gas Aggregation Company of Nigeria (GACN) and ASCL signed a 20-year Gas Sale and Aggregation Agreement under which the steel complex will receive three million standard cubic feet per day (MMscf/d) of firm gas supply and an additional 47 MMscf/d of interruptible gas.
NNPC Ltd. and its Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture also entered into a 15-year Wet Gas Sale and Purchase Agreement with UTM Floating LNG (FLNG) Ltd.
Under the arrangement, the joint venture will supply 200 MMscf/d of gas to the UTM FLNG project, providing feedstock required to support project financing ahead of a Final Investment Decision (FID) expected in the fourth quarter of 2026.
The company also signed three Network Entry Agreements with Chevron Nigeria Ltd., AGPC and NEPL to migrate existing interconnection arrangements to the Nigerian Gas Transportation Network Code.
The migration is expected to inject up to 800 MMscf/d of natural gas into the domestic transportation network, improving gas availability for power generation, manufacturing industries and other industrial users while enhancing the efficiency and reliability of the national gas grid.
The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri; the Special Adviser to the President on Energy, Olu Verheijen; the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan; and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar.
The issues
Nigeria is seeking to utilise its vast natural gas resources to drive industrialisation, improve electricity generation and diversify the economy. Expanding domestic gas supply, strengthening transportation infrastructure and supporting major industrial projects such as Ajaokuta Steel form key pillars of the Federal Government’s Decade of Gas initiative.
What’s being said
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation.” — Bashir Ojulari, Group Chief Executive Officer, NNPC Ltd.
“Gas is not only a source of revenue and profit, but also the hydrocarbon with the greatest potential to transform Nigeria’s economy.” — Bashir Ojulari, Group Chief Executive Officer, NNPC Ltd.
What’s next
The parties will begin implementing the agreements, including long-term gas supply arrangements for Ajaokuta Steel, preparations for UTM FLNG’s expected Final Investment Decision in late 2026 and integration of additional gas volumes into the Nigerian Gas Transportation Network.
Bottom line
NNPC’s latest agreements are designed to expand domestic gas utilisation, strengthen critical infrastructure and accelerate industrial development by improving gas supply to key sectors of the Nigerian economy.
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