By Olayiwola Mercy
The Nigerian 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) to deliver 1.29 billion standard cubic feet per day (bscf/d) of feedgas. This agreement is aimed at bridging the prolonged shortfall in upstream gas availability and boosting Nigeria’s energy transition drive.
The agreements are for 20 years with extension options and involve several partners, including 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. These agreements will strengthen feedgas supply to the Bonny Island plant, support the company’s expansion drive, and enhance local gas production capacity.
The deal marks a major boost for Nigeria’s energy transition agenda and the Federal Government’s gas reforms aimed at strengthening the nation’s economic prosperity and energy security. The agreements will improve supply reliability and advance Nigeria’s energy security, industrialization aspirations, and economic growth. By reinforcing Nigeria’s role in the global energy market, the agreements will open up opportunities for growth and development.
NNPC Ltd GCEO Bashir Bayo Ojulari described the agreements as a “giant step towards value creation and sustainable gas supply”. NLNG Managing Director Philip Mshelbila hailed the GSAs as a “game-changer” for Nigeria’s gas industry. Ojulari also lauded President Bola Ahmed Tinubu’s unprecedented support for the oil and gas industry, fostering an enabling environment and private sector support.
The agreements are expected to have a positive impact on Nigeria’s economy and energy sector, enhancing the country’s energy security and industrialization aspirations. With these agreements, Nigeria is poised to strengthen its position in the global energy market and drive economic growth and development.
