The Nigerian National Petroleum Company Limited (NNPC) and several upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) to deliver 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The agreements, which run for 20 years with extension options, were sealed in Abuja with suppliers including Amni International Petroleum Development, Sunlink Energies, First E&P, SNEPCo, NNPC Gas Marketing, NNPC E&P, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
The move aims to bridge long-standing shortfalls in upstream gas availability, boost Nigeria’s energy security, and strengthen the federal government’s Decade of Gas and energy transition agenda.
Speaking at the signing, NNPC’s Group Chief Executive Officer, Bayo Ojulari, described the deals as a “giant step towards sustainable gas supply,” emphasizing collaboration, economies of scale, and private sector support enabled by President Bola Tinubu’s Executive Orders.
NLNG Managing Director, Philip Mshelbila, hailed the GSAs as a “turning point” that will restore supply reliability, expand local gas production capacity, and reinforce Nigeria’s position in the global energy market. The agreements are expected to boost gas supply to NLNG’s Bonny Island plant, supporting expansion projects and industrialisation efforts.
The development also aligns with the Petroleum Industry Act (PIA) 2021 and recent fiscal incentives introduced to attract global oil and gas investment. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, noted that reforms are creating a competitive environment to lure back international oil firms, highlighting renewed interest from U.S.-based Vaalco Energy in re-entering Nigeria through OML 145.
