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Agreements cover 1.29bscf/d feedgas, scalable over time
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20-year GSAs support Decade of Gas, energy transition
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Milestone to tackle pipeline disruptions, restore reliability
The Nigerian National Petroleum Company Limited (NNPC Ltd.) and five other upstream gas producers have signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet of feedgas per day.
The deals, signed at the NNPC Towers in Abuja, involve SNEPCO-Sunlink HI project, TEPNG-AMNI JV IMA project, NNPCL-First E&P JV, SNG-NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.
The agreements, valid for 20 years with extension options, are expected to be gradually scaled up to strengthen gas supply reliability.
According to NLNG, the milestone is crucial to bridging Nigeria’s long-standing gas supply gaps, boosting feedgas availability, and supporting the Federal Government’s Decade of Gas initiative, which prioritises natural gas for industrialisation and energy transition.
NLNG’s Managing Director, Philip Mshelbila, said the agreements mark a turning point in restoring reliability of supply after years of disruption from pipeline vandalism and sabotage.
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“With the new GSAs, NLNG is optimistic about a sustainable gas supply for the future,” he said.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the deal as a giant step for value creation and sustainable supply, stressing its alignment with President Bola Tinubu’s Executive Orders that support gas development and ease of doing business.
Ojulari pledged that NNPC Ltd. would accelerate efforts to unlock opportunities in line with national gas targets, ensuring growth for both local and international stakeholders.
