The Nigerian National Petroleum Company Limited (NNPC Ltd) and five upstream gas producers have signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet of feedgas per day.
The agreements, signed in Abuja, are designed to bridge the persistent shortfall in gas supply that has undermined Nigeria’s energy sector for years. The deals, which span 20 years with options for extension, involve partnerships with Amni International Petroleum Development Company, Sunlink Energies and Resources, First Exploration & Petroleum Development Company, Shell Nigeria Exploration and Production Company, NNPC Gas Marketing, NNPC E\&P, Shell Nigeria Gas Solutions, Oando, and Aradel Holdings.
NLNG stated that the agreements will gradually scale up supply, securing gas availability for its operations and supporting Nigeria’s “Decade of Gas” initiative, which places natural gas at the heart of industrialisation, energy transition, and economic growth.
The company’s Chief Executive Officer said the milestone is a turning point after years of pipeline disruptions, vandalism, and sabotage that severely limited upstream supply and disrupted NLNG’s ability to meet commitments. He stressed that the fresh supply deals will restore reliability, strengthen Nigeria’s global standing in gas markets, and assure buyers and shareholders of sustainable operations.
On his part, the Group Chief Executive Officer of NNPC Ltd hailed the agreements as a giant step for Nigeria’s energy transition, praising both government and private stakeholders for sustaining commitment to the industry despite challenges. He noted that the GSAs will unlock opportunities for growth in both domestic and international markets, stressing that collaboration and economies of scale will be crucial in achieving the national vision for gas-led development.
He also credited the enabling policies of the Federal Government, particularly recent executive orders aimed at stimulating gas investments and easing operations for energy companies. He pledged that NNPC Ltd will continue to accelerate implementation of the national gas agenda in partnership with industry players.
The GSAs come at a critical time, as Nigeria seeks to reposition gas as a driver of industrialisation, export earnings, and energy security. For businesses, particularly those in manufacturing and power, improved gas availability is expected to reduce costs, stabilise supply, and create opportunities for expansion.
