NNPC, NLNG, partners seal landmark gas supply agreements  

The Nigerian National Petroleum Company Limited (NNPC Ltd.), Nigeria LNG Limited (NLNG), and several Joint Venture (JV) partners have signed long-term agreements to supply 1.3 billion standard cubic feet per day (mmscf/d) of feedgas to NLNG’s Bonny Plant.

The deals, signed on Friday at the NNPC Towers in Abuja, are aimed at strengthening gas supply for NLNG’s existing operations and future expansion.

They also align with the Federal Government’s Decade of Gas initiative, which prioritises natural gas in Nigeria’s industrialisation and energy transition agenda.

The new Gas Supply Agreements (GSAs), with options for extension, involve third-party suppliers including Shell Nigeria Exploration and Production Company–Sunlink Energies JV, TotalEnergies–Amni JV, NNPC–First E&P JV, Shell–NNPC Gas Marketing JV, Oando–NNPC E&P JV, and TotalEnergies JV Ubeta.

NLNG Managing Director and CEO, Dr. Philip Mshelbila, described the agreements as a “strategic breakthrough” that will boost feedgas supply to the Bonny plant and support future growth.

“The suppliers will deliver about 1,290 mmscf/d (13.3 bcm/yr), which will be scaled up over time.

“This represents a major step towards sustainable supply, ensuring NLNG meets its commercial commitments while laying the groundwork for expansion,” Mshelbila said.

He noted that the milestone was particularly significant as NLNG had for decades relied mainly on shareholder JVs for gas supply. With recent divestments by international oil companies, the company is now able to procure feedgas from diverse third-party suppliers.

Mshelbila acknowledged past challenges of vandalism and sabotage that disrupted gas supply, expressing optimism that the new agreements would stabilise operations and reassure buyers, shareholders, and the Nigerian economy.

Also speaking, NNPC Group CEO, Mr. Bashir Ojulari, hailed the deal as a “dream come true” for Nigeria’s energy sector, noting that persistent pipeline attacks and structural gaps had previously hindered gas exploration and supply.

He praised the resilience of NLNG’s founding partners, who steered the company through the establishment of Trains 1 to 6 despite daunting hurdles.

“The GSAs are a game-changer for Nigeria’s gas industry.

They will expand local gas production, improve supply, and strengthen the country’s energy security, industrialisation agenda, and economic growth,” Ojulari said.

The landmark agreements mark a historic shift for Nigeria’s gas sector, unlocking new opportunities for production, profitability, and long-term energy sustainability.