The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed six strategic agreements with industry partners aimed at expanding domestic gas supply, strengthening energy security and accelerating Nigeria’s gas-driven industrialisation agenda.
The agreements, executed on the sidelines of the 25th Nigerian Oil and Gas (NOG) Energy Week in Abuja, are expected to deepen gas utilisation across key sectors of the economy, support critical infrastructure projects and improve the efficiency of the country’s gas transportation network.
The deals comprise a Memorandum of Understanding (MoU) and a 20-year Gas Sale and Aggregation Agreement (GSAA) with the Ajaokuta Steel Company Ltd. (ASCL), a 15-year Gas Sale Agreement (GSA) with UTM Floating LNG (UTM FLNG), and three Network Entry Agreements (NEnAs) with Chevron Nigeria Ltd., AGPC and NNPC Exploration and Production Ltd. (NEPL).
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Ltd., Mr Bashir Ojulari, described the agreements as a major milestone in implementing the Federal Government’s gas-based industrialisation strategy.
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation,” Ojulari said, adding that natural gas remained the hydrocarbon with the greatest potential to transform Nigeria’s economy.
According to him, the agreements will unlock additional domestic gas supply, strengthen the Nigerian Gas Transportation Network Code, promote local content, attract investment and reinforce energy security.
A key component of the package is the partnership with Ajaokuta Steel Company, designed to support the revival of the steel complex and stimulate domestic manufacturing.
Under the Memorandum of Understanding, both organisations will collaborate on expanding gas utilisation and promoting local production of steel pipes required for strategic infrastructure projects, including the African Atlantic Gas Pipeline and the Phase III expansion of the Escravos-Lagos Pipeline System.
The accompanying 20-year Gas Sale and Aggregation Agreement, signed by NEPL, the Gas Aggregation Company of Nigeria and ASCL, provides for the supply of three million standard cubic feet of gas per day, alongside an additional 47 million standard cubic feet per day of interruptible gas to power the Ajaokuta steel complex.
NNPC Ltd. and its Seplat Energy Producing Nigeria Unlimited Joint Venture also signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG under which 200 million standard cubic feet of gas per day will be supplied to the floating LNG project.
The agreement is expected to provide the feed gas required to support project financing and facilitate a Final Investment Decision targeted for the fourth quarter of 2026.
In addition, NNPC Ltd. concluded Network Entry Agreements with Chevron Nigeria Ltd., AGPC and NEPL to migrate existing interconnection arrangements to the Nigerian Gas Transportation Network Code.
The agreements are expected to inject up to 800 million standard cubic feet of natural gas per day into the domestic gas transportation network, improving supplies to power plants, gas-based industries and industrial clusters, while enhancing the reliability and efficiency of the national gas infrastructure.
The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Special Adviser to the President on Energy, Mrs Olu Verheijen, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Mrs Oritsemeyiwa Eyesan, and the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Rabiu Umar.