The Nigerian National Petroleum Company Limited (NNPC) and five other upstream gas suppliers have inked long-term agreements with Nigeria Liquefied Natural Gas Limited (NLNG) to deliver 1.29 billion standard cubic feet of feedgas per day.

The agreements, which include options for extension, involve multiple companies, 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. The supply of feedgas will be gradually increased over time to meet NLNG’s operational needs.

The 20-year Gas Supply Agreements (GSAs) were signed at NNPC Towers in Abuja and mark a significant step toward addressing Nigeria’s long-standing upstream gas shortages. NLNG said the deals will strengthen its ability to meet commercial commitments while supporting the government’s Decade of Gas initiative, which emphasizes natural gas as a key driver for industrialization and energy transition.

Philip Mshelbila, NLNG’s Managing Director and CEO, highlighted the importance of the agreements in mitigating the effects of pipeline disruptions, vandalism, and other challenges that have affected gas supply in recent years. He expressed optimism that the new GSAs would provide a more reliable and sustainable gas supply for the future, benefiting buyers, shareholders, and the broader Nigerian economy.

NNPC’s Group CEO, Bayo Ojulari, praised NLNG shareholders and the federal government for their commitment to long-term value creation. He described the agreements as pivotal for the growth of Nigeria’s gas industry, opening opportunities for both local and international development. Ojulari also commended President Bola Tinubu for creating a supportive business environment through executive orders aimed at advancing gas sector development.

The GSAs are expected to play a critical role in accelerating Nigeria’s energy transition, boosting industrial growth, and ensuring long-term energy security.