Nigerian National Petroleum Company Limited (NNPCL) Gas Marketing Ltd (NGML) has signed a major gas supply deal with Ssonic Petroleum Ltd. The agreement, which will last for 20 years, will see NNPC supplying 80 million standard cubic feet (mmscf) of natural gas daily to Ssonic’s planned Liquefied Natural Gas (LNG) plant in the Lekki Free Trade Zone, Lagos State.
According to a statement from Olufemi O. Soneye, NNPC’s Chief Corporate Communications Officer, the deal was signed in partnership with NIPCO Gas Ltd, an unincorporated joint venture (UJV) partner.
Boosting Nigeria’s Gas Industry
NNPC says this agreement is a step towards increasing gas use in Nigeria’s industries and economy. It aligns with the Federal Government push to promote natural gas as a cleaner, cheaper, and more environmentally friendly fuel option.
This deal is part of Nigeria’s broader strategy to reduce reliance on crude oil and transition to gas as the preferred energy source. It is also expected to support industrial growth, create jobs, and contribute to economic development.
Nigeria’s Gas Future
With the global push for cleaner energy, Nigeria has been working on expanding its gas sector. The federal government’s ‘Decade of Gas’ initiative is focused on making natural gas the backbone of the country’s energy system.
This partnership between NNPC, NIPCO Gas, and Ssonic Petroleum is a significant step towards achieving that goal.
What This Means for Businesses and Consumers
For businesses, increased gas supply means access to a more stable and affordable energy source. For consumers, this could lead to cheaper cooking gas and possibly lower electricity costs in the long run.
As Nigeria continues to develop its gas infrastructure, deals like this will play a key role in shaping the country’s energy future.