The Nigerian National Petroleum Company Limited (NNPC) and several upstream gas suppliers on Friday 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 gas per day.
The agreements, which will run for 20 years with extension options, were signed in Abuja between NLNG and Amni International Petroleum Development Company, Sunlink Energies and Resources, First Exploration & Petroleum Development Company, Shell Nigeria Exploration and Production Company (SNEPCo), NNPC Gas Marketing, NNPC Exploration & Production, Shell Nigeria Gas Solutions, Oando Group, and Aradel Holdings.
A statement from NNPC described the deal as a major step toward bridging upstream gas supply shortfalls, advancing Nigeria’s energy transition agenda, and supporting government reforms to strengthen energy security and economic growth.
Group Chief Executive Officer of NNPC, Bayo Ojulari, commended NLNG shareholders and the federal government for their commitment, noting that the GSAs would unlock opportunities for sustainable growth in the gas sector. “These GSAs have opened up opportunities for industry growth both locally and internationally. They are hinged on collaboration, synergies and shared opportunities to achieve Mr. President’s Decade of Gas vision,” he said.
Ojulari praised President Bola Tinubu’s support for the sector, citing recent Executive Orders designed to ease gas development and investment. He pledged NNPC’s readiness to accelerate the implementation of national gas development targets.
NLNG Managing Director, Philip Mshelbila, described the agreements as a “turning point” for the company, saying they would improve supply reliability, boost local production capacity, and reinforce Nigeria’s role in the global energy market. “These agreements restore reliability of supply and ensure we remain firmly on the path of growth and expansion,” he said.
NLNG, an incorporated joint venture in which NNPC holds 49 per cent, Shell Gas 25.6 per cent, TotalEnergies 15 per cent, and Eni International 10.4 per cent, said the new GSAs would strengthen feedgas supply to its Bonny Island plant and support its expansion drive.
Meanwhile, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, reaffirmed Tinubu’s commitment to creating incentives that would attract investment and encourage oil companies that exited Nigeria to return.
In a statement by his media aide, Nneamaka Okafor, Lokpobiri, who received a delegation from US-based Vaalco Energy, said Nigeria is providing globally competitive incentives, including those in the Petroleum Industry Act (PIA), to boost production and stabilise revenues.
He noted that beyond fiscal reforms, the government has introduced tax holidays, zero customs duties on gas equipment, and capital allowances to encourage investment in domestic gas supply and infrastructure.
Vaalco Energy Managing Director, Pieter Van der Groen, confirmed the company’s interest in re-entering Nigeria through the acquisition of Svenska’s stake in Oil Mining Lease (OML) 145. He assured that the firm, listed on the New York Stock Exchange, has access to funding to develop assets and was committed to contributing to Nigeria’s production targets.
