NNPC, gas firms sign 20-Year gas supply deals with NLNG
The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day of feedgas.
The 20-year agreements, which include extension options, were signed on Friday at the NNPC Towers in Abuja. Signatories included NLNG and 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.
The deals are expected to bridge the prolonged shortfall in upstream gas availability and are seen as a major boost for Nigeria’s energy transition agenda and the Federal Government’s gas sector reforms aimed at enhancing economic prosperity and energy security.
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the agreements as a giant step toward value creation and sustainable gas supply. He praised NLNG’s shareholders and the Federal Government for their long-term commitment despite industry challenges.
“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 risks and opportunities for us to attain Mr. President’s Decade of Gas vision,” Ojulari said.
He commended President Bola Ahmed Tinubu for creating an enabling environment for investment, citing recent Executive Orders on gas development and ease of doing business as catalysts for progress. He also reaffirmed NNPC Ltd.’s commitment to accelerating the realisation of the Presidential directives for increased gas production and utilisation.
NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a game-changer for the industry, noting that they will enhance production capacity, improve supply reliability, and advance Nigeria’s energy security, industrialisation, and economic growth.
“These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila said. He added that the deals will reinforce Nigeria’s role in the global energy market while securing feedgas supply to the company’s Bonny Island plant.
NLNG is an incorporated joint venture in which NNPC Ltd. holds 49% equity, Shell Gas 25.6%, TotalEnergies 15%, and Eni International 10.4%.
