The Nigerian National Petroleum Company Limited (NNPCL) has executed six strategic agreements aimed at increasing gas supply to Nigeria's domestic market, supporting major industrial projects and strengthening the country's gas transportation network.
Among the agreements is a 20-year Gas Sale and Aggregation Agreement that will supply the Ajaokuta Steel Company Limited with 3 million standard cubic feet per day (mmscfd) of firm gas and an additional 47 mmscfd of interruptible gas to power operations at the steel complex.
NNPCL also signed a 15-year Wet Gas Sale and Purchase Agreement through its joint venture with Seplat to deliver 200 million standard cubic feet of gas per day to the UTM Floating LNG project. The long-term supply arrangement is expected to provide the feed gas required to support financing for the project ahead of its anticipated Final Investment Decision in the fourth quarter of 2026.
In a separate development, the company migrated existing interconnection arrangements to the Nigerian Gas Transportation Network Code (NGTNC) by executing Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPCL Exploration and Production Limited (NEPL). According to the company, the transition could inject up to 800 million standard cubic feet of gas per day into the domestic transportation network, improving supply reliability for power plants, industries and other gas consumers.
The agreements were signed on the sidelines of the 25th NOG Energy Week in Abuja and also include a Memorandum of Understanding (MoU) with the Ajaokuta Steel Company Limited and a Gas Supply Agreement with UTM FLNG Limited.
A major feature of the partnership with Ajaokuta extends beyond gas supply. NNPCL said the collaboration will also explore the production of steel raw materials required by Nigeria's oil and gas industry, including pipes for strategic infrastructure such as the African Atlantic Gas Pipeline and the third phase of the Escravos-Lagos Pipeline System expansion.
The company noted that the memorandum is anchored on two objectives: supporting the revival of the Ajaokuta Steel Complex and promoting wider domestic gas utilisation through the Nigerian Gas Transportation Network Code framework.
Speaking during the signing ceremony, the Group Chief Executive Officer of NNPCL, Bashir Ojulari, described the agreements as another step in advancing Nigeria's gas-led industrialisation agenda.
According to him, the transactions go beyond commercial contracts, providing a framework for unlocking greater value from the country's natural gas resources while supporting industrial growth and long-term economic development.
Ojulari said natural gas remains central to Nigeria's energy transition and economic diversification strategy, adding that expanding domestic gas utilisation offers broader economic benefits through increased industrial activity, improved energy security and stronger value addition.
He added that the agreements reflect NNPCL's commitment to operational efficiency, transparency and a more structured domestic gas market capable of attracting investment and supporting sustainable growth.
According to the company, the agreements collectively strengthen gas infrastructure, expand domestic supply and reinforce ongoing efforts to position natural gas as a key driver of Nigeria's industrial and economic development.