NNPC, NLNG, and JV Partners Seal Landmark 1.3bscf/d Gas Supply Deal for Nigeria’s Energy Future
The Nigerian National Petroleum Company Limited (NNPC Ltd), Nigerian Liquefied Natural Gas (NLNG), and several joint venture (JV) partners have entered into long-term Gas Supply Agreements (GSAs) to deliver 1.3 billion standard cubic feet per day (mmscf/d) of feedgas to NLNG.
PulseNets learnt that the agreements, signed at the NNPC Towers in Abuja, are aimed at strengthening feedgas availability to NLNG’s Bonny Island Plant while guaranteeing sustainability for ongoing and future operations.
According to reports, the third-party suppliers include Shell Nigeria Exploration and Production Company Ltd. – Sunlink Energies and Resources Ltd. (project), TotalEnergies E&P Nigeria Ltd. – Amni International Petroleum Development Company Ltd. (JV IMA project), as well as the NNPC Ltd. – First Exploration and Petroleum Development Company Ltd. JV. Others are Shell Nigeria Gas Solutions Ltd. – NNPC Gas Marketing Ltd. JV, OANDO – NNPC E&P JV, and the TotalEnergies E&P Nigeria Limited JV Ubeta project.
NLNG’s CEO Speaks on the Breakthrough
Philip Mshelbila, Managing Director and CEO of NLNG, told PulseNets that the milestone represents a strategic shift in gas supply security.
“The suppliers will deliver an estimated 1,290 million standard cubic feet per day (mmscf/d), or 13.3 billion cubic meters per year (bcm/yr), of feedgas to NLNG, which will be scaled up gradually over time.
“These new GSAs represent a significant boost to feedgas availability, enhancing NLNG’s capacity to meet its commercial commitments while laying the groundwork for expansion.
“This development aligns with the federal government’s Decade of Gas initiative, which places natural gas at the centre of Nigeria’s industrialisation and energy transition agenda,” Mr Mshelbila said.
He further described the agreements as the culmination of sustained efforts by shareholders and stakeholders to address long-standing constraints that have plagued Nigeria’s gas sector.
PulseNets learnt that NLNG’s operations had in recent years been heavily disrupted by vandalism and pipeline sabotage, which affected upstream gas availability and constrained supply.
“NLNG recognises the challenges the insufficient gas supply has caused to its long-term buyers, customers, shareholders, and the Nigerian economy at large. With the new GSAs, NLNG is optimistic about sustainable gas supply for the future and remains grateful for the continued support of its buyers and other stakeholders,” he added.
Mr Mshelbila also explained that this moment marks a historic departure from NLNG’s reliance on legacy shareholder JVs, as recent International Oil Companies (IOCs) divestments of onshore assets have opened the space for diverse third-party suppliers to participate.
NNPC Boss Lauds Gas Sector Milestone
Bashir Ojulari, Group CEO of NNPC Ltd., also spoke to PulseNets after the signing ceremony, describing the agreements as a “dream come true” for Nigeria’s gas industry.
“The NLNG concept had been on the table for two decades before the Federal Government allowed partners and critical enablers to commence and sanction the project,” Ojulari recalled.
He commended the resilience of the founding partners from Train One through Train Six, saying their commitment had demonstrated Nigeria’s readiness to run a world-class LNG business.
“In spite of the challenges in the Niger Delta, where much of our supply comes from onshore and shallow water, we have faced both technical and non-technical hurdles. Technically, we needed to continue developing new gas resources,” he noted.
Ojulari told PulseNets that persistent pipeline attacks not only crippled oil production but also exposed vulnerabilities in Nigeria’s gas supply framework.
“There is still much to be done to unlock gas exploration. Some third parties have ready gas, but the structure and framework to bring the gas to market and maximise capacity utilisation and profitability have been lacking. That is why this agreement is a dream come true for Nigeria’s energy sector and a proud moment for the founding partners, who welcomed other parties into this venture,” he said.
Reaffirming NNPC’s commitment to implementing the Presidential Executive Orders for the oil and gas sector, Ojulari stressed that the new GSAs were more than just contracts — they are a game-changer for Nigeria’s energy security, industrialisation drive, and economic growth.
“The landmark GSAs are a game-changer for Nigeria’s gas industry, enhancing local gas production capacity and improving supply, both critical to the country’s energy security, industrialisation goals, and economic growth.”
Also Read: FG Secures N2.8b Google Support For Nigeria’ AI Talent Development
Industry analysts told PulseNets that the new NNPC-NLNG Gas Supply Agreements could serve as the backbone of Nigeria’s much-anticipated energy transition. By ensuring a steady supply to NLNG’s Bonny Island trains, the deals not only improve Nigeria’s standing in the global LNG market but also anchor the government’s Decade of Gas initiative.
With vandalism, sabotage, and IOC divestments reshaping the energy landscape, the inclusion of new players under the GSAs provides NLNG with the flexibility to diversify feedgas sources. This move, experts say, could unlock new levels of stability, revenue generation, and global competitiveness for Nigeria’s gas sector.
