NNPC and Gas Suppliers Sign 20-Year Agreements to Deliver 1.29bscf/d Feedgas to NLNG
By NaijaEnquirer Staff
The Nigerian National Petroleum Company Limited (NNPC) and several upstream gas suppliers 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 per day (bscf/d) of Feedgas.
The agreements, which have a duration of 20 years with extension options, were signed at the NNPC Towers in Abuja by NLNG alongside partners including Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, First Exploration & Petroleum Development Company Limited, SNEPCo, NNPC Gas Marketing Limited, NNPC E&P Limited, Shell Nigeria Gas Solutions Limited, Oando Group, and Aradel Holdings.
This development marks a significant step towards addressing the long-standing shortfall in upstream gas supply while supporting Nigeria’s energy transition agenda and the Federal Government’s gas reforms aimed at boosting economic growth and energy security.
Speaking during the signing ceremony, NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the agreements as a “giant step towards sustainable gas supply and value creation.” He emphasized that the GSAs would unlock opportunities for growth across local and international markets, leveraging collaboration to achieve the Decade of Gas vision.
Ojulari commended President Bola Ahmed Tinubu for creating an enabling business environment through the issuance of Executive Orders that drive gas development and ease of doing business in Nigeria.
Reaffirming NNPC’s commitment, he added: “We will continue to work with partners to implement the Presidential Executive Orders and unlock opportunities for shared prosperity in line with the national gas development targets.”
NLNG Managing Director, Philip Mshelbila, hailed the agreements as a “game-changer for Nigeria’s gas industry”, noting that they will enhance supply reliability, increase local gas production capacity, and advance the country’s industrialization and energy security goals.
“These agreements represent a turning point for NLNG, restoring supply reliability and ensuring we remain firmly on the path of growth and expansion,” Mshelbila stated.
The new GSAs will strengthen feedgas supply to NLNG’s Bonny Island plant and reinforce Nigeria’s role in the global LNG market.
NLNG is an incorporated joint venture (IJV) with shareholding as follows: NNPC (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni International (10.4%).
