The Nigerian National Petroleum Company Limited (NNPC Ltd) and five other upstream gas suppliers have entered into 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 landmark agreements, signed at the NNPC Towers in Abuja, are designed to boost feedgas availability, strengthen NLNG’s production capacity, and align with the Federal Government’s Decade of Gas initiative, which prioritises natural gas as a key driver of industrialisation, energy security, and economic diversification.
According to statements released by NNPC and NLNG, the GSAs involve multiple joint venture partners and operators, including:
SNEPCO-Sunlink HI Project
TEPNG AMNI JV IMA Project
NNPCL-First E&P JV
SNG NGML
Oando-NNPC E&P
TEPNG JV Ubeta
The agreements, which have an initial 20-year lifespan with options for extension, will be phased in gradually to reach the target supply of 1.29 bscf/d.
The signing ceremony brought together key industry stakeholders, including Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, First Exploration & Petroleum Development Company Limited, Shell Nigeria Gas Solutions Limited, Oando Group, and Aradel Holdings.
Speaking on the development, Philip Mshelbila, Managing Director and CEO of NLNG, described the agreements as a turning point for the company, which has faced prolonged challenges in gas supply due to pipeline disruptions, vandalism, and insecurity in oil-producing regions.
“NLNG recognises the challenges that the insufficiency of gas supply has caused to its long-term buyers, customers, shareholders, and the Nigerian economy.
With these GSAs, we are optimistic about a sustainable gas supply for the future,” Mshelbila said.
He added that the agreements were the culmination of sustained collaboration between shareholders, government, and private sector players, aimed at restoring reliability in Nigeria’s gas supply chain.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, hailed the agreements as a “giant leap” toward achieving President Bola Tinubu’s Decade of Gas vision.
He emphasised that the deals would not only stabilise supply but also create opportunities for both domestic consumption and international export.
“These GSAs have opened up opportunities for growth in our industry, both locally and globally.
They are hinged on collaboration and synergies that will help us share risks, leverage economies of scale, and unlock prosperity for all stakeholders,” Ojulari stated.
He further credited the Tinubu administration for providing an enabling environment through Executive Orders targeted at gas sector reforms and ease of doing business.
Industry experts note that the long-term supply agreements will address feedgas shortfalls that have affected NLNG’s ability to meet export obligations in recent years.
More reliable feedgas will strengthen Nigeria’s position as a leading LNG exporter, help secure foreign exchange earnings, and support industrialisation through gas-to-power and gas-to-industry projects.
The agreements also complement the Federal Government’s push for gas utilisation in transportation, cooking, and manufacturing, reducing dependence on costly petroleum imports while advancing Nigeria’s energy transition goals.
For Nigeria, natural gas is not just a transition fuel but also a strategic asset for growth.
With proven reserves of more than 200 trillion cubic feet, analysts argue that effective gas development could transform Nigeria into a global hub for LNG, petrochemicals, and industrial gas solutions.
The latest GSAs signal renewed optimism in the sector.
However, stakeholders stress that security, transparency, and consistent policy implementation will be key in ensuring that the benefits of these agreements are fully realised.
As Mshelbila noted, “This milestone marks a fresh beginning for NLNG, one that ensures we remain firmly on the path of growth and expansion, while delivering long-term value to Nigeria and our partners.”