The Nigerian National Petroleum Company Limited (NNPC Ltd.) and several upstream gas suppliers on Friday signed long-term Gas Supply Agreements (GSAs) with Nigeria Liquefied Natural Gas Limited (NLNG) for the delivery of 1.29 billion standard cubic feet per day (bscf/d) of feedgas.
The agreements, which span 20 years with options for extension, were formalized at the NNPC Towers in Abuja. Signatories included NLNG and Amni International Petroleum Development Company Limited; Sunlink Energies and Resources Limited; First Exploration & Petroleum Development Company Limited; SNEPCo; NNPC Gas Marketing Limited; NNPC E&P Limited; Shell Nigeria Gas Solutions Limited; Oando Group; and Aradel Holdings.
Designed to bridge the persistent shortfall in upstream gas availability, the GSAs are seen as a major boost to Nigeria’s energy transition agenda and the Federal Government’s gas sector reforms aimed at strengthening economic growth and energy security.
Speaking at the event, NNPC Ltd.’s Group Chief Executive Officer, Engr. Bashir Ojulari, described the deal as a giant leap for the industry. “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,” he said.
Ojulari praised President Bola Ahmed Tinubu for creating an enabling environment through Executive Orders that support gas development and ease of doing business. He pledged NNPC Ltd.’s commitment to working with partners to unlock opportunities in line with national gas development targets for incremental production and collective prosperity.