The Nigerian National Petroleum Company Limited (NNPC Ltd.) and key upstream gas suppliers 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 feed gas.
The 20-year agreements, each with extension options, were formalised 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.
The GSAs are expected to significantly bridge the longstanding gap in upstream gas supply and serve as a major milestone in Nigeria’s energy transition efforts and ongoing gas sector reforms. The agreements aim to reinforce the Federal Government’s commitment to energy security, industrialisation, and economic diversification.
Speaking at the signing ceremony, NNPC Ltd.’s Group Chief Executive Officer, Engr. Bashir Ojulari, described the agreements as a transformative move for the Nigerian gas industry.
“These GSAs represent a giant leap forward in value creation and the sustainable supply of gas,” Ojulari said. “They are built on collaboration, shared risk, and opportunities. By leveraging economies of scale and synergy among industry stakeholders, we are aligning with President Bola Ahmed Tinubu’s ‘Decade of Gas’ vision.”
Ojulari commended the supportive regulatory environment and enabling policies instituted by the Tinubu administration, particularly the recent Executive Orders aimed at accelerating gas development and simplifying the business landscape.
He reaffirmed NNPC’s readiness to partner with stakeholders in unlocking new investment and production opportunities, aligning with national gas development goals for increased output and energy accessibility.
In his remarks, NLNG Managing Director and CEO, Dr. Philip Mshelbila, hailed the GSAs as a “game-changer” for Nigeria’s gas industry.
“These agreements restore reliability of supply and put us firmly on the path of sustained growth and expansion,” Mshelbila said. “They are critical to enhancing local production capacity, improving gas supply consistency, and contributing to national energy security and industrial development.”
He credited the achievement to the dedication of NLNG’s shareholders and industry partners, noting that the agreements would also strengthen gas supply to the company’s Bonny Island liquefaction plant while supporting its long-term expansion strategy.
“These GSAs reinforce Nigeria’s strategic position in the global energy landscape,” Mshelbila added.
Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV) owned by NNPC Ltd. (49%), Shell Gas B.V. (25.6%), TotalEnergies Gaz & Electricité Holdings (15%), and Eni International (10.4%).
