The Nigerian National Petroleum Company Limited (NNPC Ltd.), Nigeria LNG Limited (NLNG), and several joint venture partners have signed long-term Gas Supply Agreements (GSAs) for the delivery of 1.3 billion standard cubic feet per day (mmscf/d) of feedgas.
The landmark deals, sealed on Friday at the NNPC Towers in Abuja, are expected to ensure sustainable gas supply for NLNG’s Bonny Island Plant, strengthen operations, and support future expansion.
The third-party suppliers include Shell Nigeria Exploration and Production Company Ltd.–Sunlink Energies and Resources Ltd. project, and TotalEnergies E&P Nigeria Ltd.–Amni International Petroleum Development Company Ltd. JV IMA project. Others are NNPC Ltd.–First Exploration and Petroleum Development Company Ltd. JV; Shell Nigeria Gas Solutions Ltd.–NNPC Gas Marketing Ltd. JV; Oando–NNPC E&P JV; and TotalEnergies E&P Nigeria Ltd. JV Ubeta.
Dr. Philip Mshelbila, Managing Director and CEO of NLNG, said the agreements mark a strategic shift for the company, which until now had relied primarily on shareholder joint ventures for its gas supply.
“The suppliers will deliver an estimated 1,290 mmscf/d, or 13.3 billion cubic meters annually, of feedgas to NLNG, to be scaled up gradually over time,” Mshelbila explained. “These GSAs significantly boost feedgas availability, enhance our capacity to meet commercial commitments, and lay the groundwork for future growth.”
He stressed that the development aligns with the Federal Government’s “Decade of Gas” initiative, which places natural gas at the heart of Nigeria’s industrialisation and energy transition agenda.
NLNG has in recent years faced severe feedgas constraints due to pipeline vandalism and sabotage, which disrupted upstream supply. Mshelbila acknowledged the impact of these challenges on buyers, shareholders, and the wider economy but expressed optimism that the new GSAs would deliver sustainable supply going forward.
“With the diversification of supply sources beyond legacy shareholders, NLNG can now access feedgas from a broader pool of third-party producers, particularly after the divestment of onshore assets by International Oil Companies,” he added.
Also speaking, NNPC Group CEO, Mr. Bashir Ojulari, described the agreements as a “dream come true” for Nigeria’s gas sector.
“The NLNG concept had been on the table for two decades before it was finally sanctioned. Despite the challenges in the Niger Delta, we have persevered to move from Train One to Train Six, demonstrating Nigeria’s capacity to operate a world-class LNG business,” Ojulari said.
He noted that pipeline attacks and underdeveloped gas infrastructure had long hindered supply, but praised the new framework for enabling third parties to bring gas to market.
“This agreement is a game-changer. It not only secures Nigeria’s energy future but also unlocks new opportunities for growth, industrialisation, and economic development,” he added.
Ojulari reaffirmed NNPC’s commitment to implementing the Presidential Executive Orders on the energy sector and to working with partners to grow national gas output, boost capacity utilisation, and drive profitability.
