By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas producers have signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet of feedgas per day.
The agreements, which run for 20 years with extension options, were sealed on Friday at the NNPC Towers in Abuja. Signatories included NLNG and Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; Shell Nigeria Exploration and Production Company (SNEPCo); NNPC Gas Marketing Limited; NNPC E&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
Designed to address Nigeria’s persistent shortfall in upstream gas supply, the GSAs are expected to significantly advance the Federal Government’s gas sector reforms and energy transition drive while bolstering economic growth and national energy security.
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Ojulari, praised NLNG shareholders and the Federal Government for sustaining long-term commitments to the gas industry despite years of challenges.
“These GSAs create new opportunities for industry growth, both locally and internationally. They reflect the importance of collaboration, risk-sharing, and economies of scale as we pursue Mr. President’s Decade of Gas vision,” Ojulari stated.
He credited President Bola Tinubu’s executive orders on gas development and business reforms for creating a supportive investment environment, pledging NNPC Ltd.’s full commitment to accelerating the implementation of these directives in partnership with industry stakeholders.
NLNG Managing Director, Philip Mshelbila, described the GSAs as a “game-changer” for Nigeria’s gas industry. He said the agreements will expand domestic gas production capacity, enhance supply reliability, and reinforce Nigeria’s role in the global energy market.
“These agreements mark a turning point for NLNG, restoring supply reliability and positioning us firmly for growth and expansion. They also strengthen feedgas supply to our Bonny Island plant, enabling us to meet both domestic and international commitments,” he said.
Nigeria LNG Limited (NLNG) operates as an incorporated joint venture with shareholding structured as follows: NNPC Ltd. (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni International (10.4%).
