The Nigerian National Petroleum Company Limited (NNPC Ltd.) and a consortium of upstream gas producers have signed landmark Gas Supply Agreements (GSAs) with Nigeria LNG Limited (NLNG) for the provision of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The 20-year contracts, signed at the NNPC Towers in Abuja, are designed to tackle persistent shortfalls in upstream gas availability, enhance supply reliability, and reposition Nigeria’s gas sector as a catalyst for economic growth and energy security.
A Strategic Boost for Gas Reforms
The agreements align with the Federal Government’s ongoing gas reforms and its broader Decade of Gas initiative, which aims to expand domestic utilisation while consolidating Nigeria’s foothold in the global LNG market.
The signatories include Amni International Petroleum Development Company, Sunlink Energies and Resources, First E&P, SNEPCo, NNPC Gas Marketing, NNPC E&P, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
Industry analysts describe the deal as a significant milestone for Nigeria’s energy transition agenda, as it secures stable feedgas supply to the Bonny Island LNG facility critical for sustaining production, attracting fresh investment, and boosting foreign exchange earnings.
Commitment to Value Creation
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Ojulari, hailed the agreements as “a giant leap towards value creation and sustainable gas supply.” He stressed the importance of collaboration and risk-sharing among partners to unlock opportunities in line with the government’s energy diversification goals.
Ojulari further praised President Bola Tinubu’s enabling policies, citing executive orders on gas development and ease of doing business as pivotal in accelerating investment decisions across the gas value chain.
A Turning Point for NLNG
For NLNG, the agreements mark what Managing Director Philip Mshelbila called a “turning point” in the company’s journey. He noted that the GSAs restore reliability of supply, strengthen expansion plans, and reinforce Nigeria’s relevance in global LNG trade.
“These agreements enhance our local production capacity, ensure consistency in feedgas supply, and support Nigeria’s industrialisation and economic growth targets,” Mshelbila said.
Strengthening Nigeria’s Global Energy Role
NLNG, an incorporated joint venture with NNPC Ltd. (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni (10.4%), remains a major player in global LNG exports. With the new GSAs, analysts expect greater stability in output, potentially lifting Nigeria’s competitiveness amid tightening international gas markets.
By securing 1.29bscf/d of feedgas over two decades, the agreements not only anchor Nigeria’s LNG capacity but also signal renewed investor confidence in the country’s upstream sector, where under-investment and infrastructure gaps have long constrained output.