The Nigerian National Petroleum Company Limited (NNPC Ltd.) and a consortium of upstream gas suppliers have signed landmark Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
According to Channels Tv, the agreements spanning 20 years with options for extension, were signed on Friday at the NNPC Towers in Abuja.
The deal involves key players including Amni International Petroleum Development Company, Sunlink Energies and Resources, First Exploration & Petroleum Development Company, Shell Nigeria Exploration and Production Company (SNEPCo), NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
The initiative is designed to address the persistent shortfall in upstream gas supply and represents a significant milestone in Nigeria’s energy transition agenda and the Federal Government’s ongoing gas sector reforms aimed at enhancing energy security and economic growth.
Speaking at the event, NNPC’s Group Chief Executive Officer, Engr. Bashir Ojulari, hailed the GSAs as “a giant step towards value creation and sustainable gas supply,” stressing that they would open opportunities for both domestic and international industry growth.
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He credited President Bola Tinubu’s administration for creating an enabling business environment through Executive Orders that support gas development and ease of doing business.
Ojulari further pledged NNPC’s commitment to fast-tracking the implementation of the Presidential Executive Orders for the industry, underscoring the company’s determination to unlock new opportunities and achieve the “Decade of Gas” vision.
NLNG Managing Director, Philip Mshelbila, described the agreements as a turning point, noting that they would enhance domestic production capacity, ensure supply reliability, and reinforce Nigeria’s role in the global energy market.
“These agreements restore supply reliability and place NLNG firmly on the path of growth and expansion,” he stated.
NLNG, which operates as an incorporated joint venture, is owned by NNPC Ltd. (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni International (10.4%).
The company’s Bonny Island plant is expected to benefit significantly from the renewed feedgas commitments, bolstering Nigeria’s industrialisation efforts and energy security.
This deal comes as Nigeria intensifies efforts to position natural gas as the cornerstone of its energy future, with the Federal Government eyeing fresh investments—including a proposed $238 million loan from Japan for national grid expansion.
Image Credit: The Guardian Nigeria News
