In a landmark development for Nigeria’s energy sector, the Nigerian National Petroleum Company Limited (NNPC Ltd.) alongside several upstream gas suppliers, has 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 (bscf/d) of feed gas.
The 20-year agreements, with extension options, were signed at the NNPC Towers in Abuja on Friday. Signatories include Amni International Petroleum Development Company, Sunlink Energies, First Exploration & Petroleum Development Company, SNEPCo, NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
The agreements are aimed at bridging the prolonged shortfall in upstream gas availability and represent a critical step toward Nigeria’s energy transition agenda and the Federal Government’s gas reforms. They are expected to strengthen energy security, industrialisation, and economic growth.
Speaking at the ceremony, NNPC Ltd. Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the GSAs as a “giant step towards value creation and sustainable gas supply.” He emphasized that collaboration, risk-sharing, and leveraging economies of scale are essential to achieving President Bola Ahmed Tinubu’s “Decade of Gas” vision.
Ojulari further commended the President’s enabling policies, including Executive Orders targeted at gas development, which have improved the ease of doing business in Nigeria’s energy sector.
Philip Mshelbila, Managing Director of NLNG, hailed the agreements as a game-changer for Nigeria’s gas industry, noting they will enhance local gas production capacity, improve supply reliability, and support the nation’s industrialisation ambitions. He stated that the agreements reinforce Nigeria’s role in the global energy market and will secure feed gas supply to the Bonny Island plant, supporting NLNG’s expansion efforts.
The long-term GSAs signal a turning point for Nigeria’s energy sector, demonstrating the Federal Government and private sector’s commitment to sustainable energy development. The agreements are expected to:
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Stabilize and increase gas supply to key industrial and export infrastructure.
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Encourage investment and economic growth in the oil and gas sector.
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Support job creation and technological development in line with national gas policy.
NLNG, an incorporated joint venture, has the following shareholders: NNPC Ltd. 49%, Shell Gas 25.6%, TotalEnergies 15%, and Eni International 10.4%.
The signing of these agreements reflects Nigeria’s strategic vision for energy security, industrial growth, and economic diversification. By ensuring reliable gas supply and strengthening upstream partnerships, the country is taking significant steps toward sustainable development and global competitiveness in the energy market.
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