In a move to address persistent gas shortages and strengthen the nation’s energy security, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers have signed long-term agreements to supply gas to the Nigeria Liquefied Natural Gas Limited (NLNG).
The agreements, which are set to last for 20 years with potential for extension, will see the delivery of 1.29 billion standard cubic feet of gas per day (bscf/d) to the NLNG. The signing ceremony took place at the NNPC Towers in Abuja on Friday.
The deal involves a consortium of companies, including Amni International Petroleum Development Company, Sunlink Energies and Resources, First Exploration & Petroleum Development Company, Shell Nigeria Exploration and Production Company (SNEPCo), NNPC Gas Marketing Limited, NNPC Exploration and Production Limited, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
Bayo Ojulari, the Group Chief Executive Officer of NNPC Ltd., hailed the agreements as a “giant step” toward sustainable gas supply and value creation.
He praised the support of President Bola Tinubu, crediting the administration’s Executive Orders for creating an environment conducive to such business transactions.
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According to Ojulari, this collaboration will help Nigeria achieve the “Decade of Gas” vision and unlock opportunities for shared prosperity.
NLNG’s Managing Director, Philip Mshelbila, echoed this sentiment, calling the agreements a “game-changer” for the country’s gas industry.
He emphasised that the new contracts would improve the reliability of gas supply to the Bonny Island plant, support NLNG’s expansion plans, and contribute to Nigeria’s industrialisation and economic growth.
The agreements mark a shift in NLNG’s supply strategy, moving beyond its traditional shareholder joint venture partners to include a broader range of third-party suppliers.
This is seen as a crucial step in ensuring consistent and reliable gas feed for both current operations and future expansion projects.
