The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas producers have signed long-term Gas Supply Agreements (GSAs) with Nigeria LNG Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The 20-year deals, with extension options, were sealed on Friday at the NNPC Towers in Abuja with Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; Shell Nigeria Exploration & Production Company (SNEPCo); NNPC Gas Marketing Limited; NNPC E\&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
The agreements are expected to bridge Nigeria’s prolonged upstream gas supply shortfall, strengthen the country’s energy security, and advance the Federal Government’s energy transition and gas reform agenda.
Speaking at the ceremony, NNPC’s Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, hailed the agreements as a milestone for value creation and industry growth. He credited President Bola Ahmed Tinubu’s Executive Orders for creating the enabling environment that has spurred gas development and ease of doing business.
“These GSAs have opened up opportunities for the growth of our industry both for local and international development,” Ojulari said. “We need to leverage economies of scale, share risk and opportunities, and collectively attain Mr. President’s Decade of Gas vision.”
NLNG Managing Director, Philip Mshelbila, described the GSAs as a “game-changer” that would enhance supply reliability, improve local production capacity, and support the company’s Bonny Island expansion project.
“This is a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila said.
NLNG is an incorporated joint venture with NNPC Ltd holding 49%, Shell Gas 25.6%, TotalEnergies 15%, and Eni International 10.4%.
