NNPC, NLNG Gas Agreements To Boost Nigeria’s Domestic, Export Potential

The Nigerian National Petroleum Company (NNPC) Limited and key upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG), marking a significant step toward boosting Nigeria’s domestic energy capacity and export potential.

The agreements, spanning 20 years with options for extension, ensure the delivery of 1.29 billion standard cubic feet per day (bscf/d) of Feedgas to NLNG’s operations.

This pact is expected to enhance local gas production reliability, support industrial growth, and strengthen Nigeria’s position in the global energy market.

The 20-year agreements, which include options for extension, were concluded on Friday at the NNPC Towers in Abuja.

The agreement’s signatories 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.

Speaking at the ceremony, NNPC’s group chief executive officer, Bayo Ojulari, hailed the agreements as a milestone for the industry.

“These GSAs have opened up opportunities for the growth of our industry both for local and international development. They’re hinged on collaboration, synergies and opportunities. We need to leverage economies of scale, share risk and opportunities for us to attain the President’s Decade of Gas vision,” he said.

Ojulari also praised the federal government’s policy direction, noting that President Bola Tinubu’s recent executive orders had created a more supportive business environment.

“It is important to commend the President’s tremendous effort that has enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business,” he added.

He reaffirmed NNPC’s commitment to accelerating the implementation of the executive orders, pledging to work with partners to unlock opportunities for increased gas production in line with national targets.

NLNG’s managing director, Philip Mshelbila, described the agreements as a turning point for the company and a potential game-changer for Nigeria’s gas industry.

“We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring supply reliability and ensuring we remain firmly on the path of growth and expansion,” he said.

According to him, the GSAs will enhance local gas production capacity, improve supply reliability, and support Nigeria’s industrialisation and economic growth agenda while reinforcing the country’s place in the global energy market.

The agreements also secure Feedgas for NLNG’s Bonny Island plant and underpin its expansion drive.

Nigeria, which holds over 200 trillion cubic feet (tcf) of proven natural gas reserves, the largest in Africa and the ninth-largest in the world, has faced persistent supply bottlenecks that have hampered both domestic utilisation and LNG exports.

NLNG, which once operated its six-train plant at nearly full capacity, has in recent years struggled with Feedgas shortages.

The agreements will bridge the prolonged shortfall in upstream gas availability, marking a major boost for Nigeria’s energy transition agenda and the Federal Government’s gas reforms aimed at strengthening the nation’s economic prosperity.