The NNPC and NLNG gas supply agreements signed in Abuja mark a major milestone in Nigeria’s energy transition journey. On Friday, the Nigerian National Petroleum Company Limited (NNPC) and six upstream gas suppliers signed long-term contracts with the Nigeria Liquefied Natural Gas Limited (NLNG) to deliver 1.29 billion standard cubic feet of feedgas daily.
The 20-year agreements, with options for extension, were signed with partners including SNEPCO-Sunlink HI Project, TEPNG AMNI JV IMA Project, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta. According to NLNG and NNPC, the supply will be gradually scaled up over time to strengthen Nigeria’s gas availability.
Why the NNPC and NLNG Gas Supply Agreements Matter
The agreements are designed to bridge the prolonged shortfall in gas supply that has limited industrial growth. They also align with the Federal Government’s Decade of Gas initiative, which places natural gas at the heart of Nigeria’s energy transition and industrialisation agenda.
Philip Mshelbila, CEO of NLNG, described the milestone as the culmination of sustained collaboration between shareholders and stakeholders. He acknowledged past challenges such as pipeline vandalism and supply disruptions but expressed optimism that the new deals would secure a sustainable gas future.
Driving Energy Security and Industrial Growth
For Nigeria, these agreements go beyond LNG exports. They support energy security, job creation, and long-term economic stability. Reliable gas supply is central to reducing power shortages, attracting investment, and fostering industrial expansion.
With 1.29bscf of gas daily, NLNG can better meet commitments to buyers and ensure stability in both domestic and international markets. The move also boosts investor confidence in Nigeria’s oil and gas sector, proving that reforms are beginning to yield results.
