Nigeria’s cooking gas supply is set for a major boost as Seplat Energy seals a deal with the Nigerian Liquefied Natural Gas (NLNG) company, promising to increase market availability and potentially lower prices.

The agreement, which is expected to take full effect in Q3 2025, will see NLNG receiving over 150,000 tons of gas monthly from Seplat Energy. This volume is about 12% higher than the average gas supply recorded in 2024.

Effiong Okon, Managing Director of ANOH Gas Processing Company (a Seplat subsidiary), confirmed that both parties are “working out the technical and commercial details of the agreement so that supply can fully commence in Q3, 2025.”

NLNG, a joint venture between the Nigerian government, Shell, TotalEnergies, and Eni, had previously struggled with gas shortages due to rampant fuel theft and pipeline vandalism.

This new partnership with Seplat marks only the second time in the company’s history that it will receive supply from a third-party provider.

“This deal enables Seplat to help NLNG tackle its gas supply problems, while using it to overcome its infrastructure limitations and increase revenue,” said Katlong Alex, analyst at the African Energy Council.

The development follows Seplat’s $1.28 billion acquisition of ExxonMobil’s Nigerian unit, a move that added up to 50% more capacity to its gas production and reactivated over 400 dormant oil wells.

NLNG remains Nigeria’s top supplier of cooking gas and has warned in the past of looming shortages due to reduced supply, which has driven prices higher.

Industry watchers are optimistic that this deal could ease those concerns.If all goes according to plan, Nigerians may soon see improved availability and more stable prices in the cooking gas market.