The Nigerian National Petroleum Company Limited and five other upstream gas suppliers have signed long-term Gas Supply Agreements with the Nigeria Liquefied Natural Gas Limited for the delivery of 1.29 billion standard cubic feet of feedgas daily.

According to separate statements on Friday by NLNG and NNPC, the long-term agreements, with options for extension, were signed with 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 1.29 bscf/d of feedgas to NLNG would be gradually scaled up over a period of time.

“The 20-year agreements, with extension options, were signed at the NNPC Towers in Abuja on Friday by the NLNG and 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,” the NNPC said.


The agreements, it was said, aimed at bridging the prolonged shortfall in upstream gas availability, marking a major boost for Nigeria’s energy transition agenda and the Federal Government’s gas reforms to strengthen the nation’s economic prosperity and energy security.

According to NLNG, the agreements represent a significant boost to feedgas availability, enhancing NLNG’s capacity to meet its commercial commitments while aligning with the Federal Government’s Decade of Gas initiative, which places natural gas at the centre of Nigeria’s industrialisation and energy transition agenda.

Speaking on the agreements, NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the milestone as the culmination of sustained efforts by shareholders and stakeholders to address long-standing gas supply constraints.

He noted that in recent years, NLNG’s operations had been significantly impacted by pipeline disruptions, including vandalism and sabotage, affecting upstream gas availability.

“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long-term buyers, customers, shareholders and, more widely, the Nigerian economy. With the new GSAs, NLNG is optimistic about a sustainable gas supply for the future and remains grateful for the continuing support of its buyers and other stakeholders and looks forward to a successful future together.

“We could not have achieved this without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila said.

Speaking, the Group Chief Executive Officer of NNPC, Bayo Ojulari, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite the challenges faced over the years.

He described the agreements as a giant step towards value creation and sustainable gas supply.

“These GSAs have opened up opportunities for the growth of our industry both for local and international development. They’re hinged on collaboration, synergies and opportunities. We need to leverage economies of scale and share risk and opportunities for us to attain Mr President’s Decade of Gas vision,” he said.

Ojulari lauded the enabling environment and private sector support fostered by President Bola Tinubu.

“It is important to commend the President’s tremendous effort that has enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business,” he added.

The GCEO reaffirmed NNPC Ltd’s readiness to accelerate the realisation of the Presidential Executive Orders for the industry, pledging to work with partners to unlock opportunities for collective prosperity, in line with the national gas development targets for incremental production.