Nigeria Strengthens Energy Security with 1.29 Billion Cubic Feet Daily Gas Supply Deal
In a major boost to Nigeria’s energy transition agenda, the National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers 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 per day (bscf/d) of Feedgas. The 20-year agreements, with extension options, were signed at the NNPC Towers in Abuja, marking a significant milestone in Nigeria’s efforts to strengthen its energy security and economic prosperity.
The GSAs, aimed at bridging the prolonged shortfall in upstream gas availability, were signed by NLNG and several leading gas suppliers, including Amni International Petroleum Development Company Limited, Sunlink Energies and Resources Limited, and Shell Nigeria Gas Solutions Limited, among others. Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Ojulari, commended NLNG’s shareholders and the Federal Government for their long-term commitment to value delivery despite the challenges faced over the years.
“These GSAs have opened up opportunities for the growth of our industry, both for local and international development. They’re hinged on collaboration, synergies, and opportunities. We need to leverage economies of scale, share risks, and opportunities for us to attain Mr. President’s Decade of Gas vision,” Ojulari said. He also lauded the enabling environment and private sector support fostered by President Bola Ahmed Tinubu, noting that the President’s efforts have enabled the business through the issuance of Executive Orders targeted at gas developments and ease of doing business.
NLNG Managing Director Philip Mshelbila hailed the GSAs as a game-changer for Nigeria’s gas industry, saying they will enhance local gas production capacity, improve supply reliability, and advance the nation’s energy security, industrialisation aspirations, and economic growth. “We could not have achieved this sooner without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila noted.
The new GSAs reinforce Nigeria’s role in the global energy market while strengthening feed gas supply to the Bonny Island plant and supporting the company’s expansion drive. The Nigeria LNG Limited (NLNG) is an incorporated joint venture (IJV), with NNPC Ltd. holding 49%, Shell Gas 25.6%, TotalEnergies 15%, and Eni International 10.4%. With this significant development, Nigeria is poised to strengthen its energy security, drive economic growth, and reinforce its position as a major player in the global energy market.
