The Nigerian National Petroleum Company Limited and five other upstream gas producers have finalized long-term Gas Supply Agreements with Nigeria Liquefied Natural Gas Limited to supply 1.29 billion standard cubic feet of feedgas per day.

In separate statements on Friday, NLNG and NNPC confirmed that the agreements, which include options for extension, were signed with the following partners: SNEPCO-Sunlink HI project, TEPNG-AMNI JV IMA project, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.

The 1.29 billion standard cubic feet per day (bscf/d) of feedgas to NLNG will be gradually ramped up over time.

“The 20-year agreements, with extension options, were signed at the NNPC Towers in Abuja on Friday by the 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,” the NNPC said.

The agreements are intended to address the prolonged shortfall in upstream gas supply, providing a significant boost to Nigeria’s energy transition efforts and supporting the Federal Government’s gas reforms aimed at strengthening economic prosperity and energy security.

NLNG stated that the deals will enhance feedgas availability, enabling the company to better meet its commercial commitments while advancing the Federal Government’s Decade of Gas initiative, which positions natural gas as a key driver of industrialisation and the nation’s energy transition.

Commenting on the agreements, NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, called the milestone the result of sustained collaboration among shareholders and stakeholders to tackle long-standing gas supply challenges.

He noted that in recent years, NLNG’s operations have been heavily affected by pipeline disruptions, including vandalism and sabotage, which have constrained upstream gas supply.

“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long-term buyers, customers, shareholders and, more widely, the Nigerian economy. With the new GSAs, NLNG is optimistic about a sustainable gas supply for the future and remains grateful for the continuing support of its buyers and other stakeholders and looks forward to a successful future together.

“We could not have achieved this without the deliberate and concerted efforts of our shareholders and stakeholders in the energy industry in Nigeria. These agreements are a turning point in NLNG’s journey, restoring reliability of supply and ensuring we remain firmly on the path of growth and expansion,” Mshelbila said.

Speaking, NNPC Group Chief Executive Officer Bayo Ojulari praised NLNG’s shareholders and the Federal Government for their long-term commitment to delivering value despite years of challenges.

He characterized the agreements as a major milestone for value creation and the assurance of a sustainable gas supply.

“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 and share risk and opportunities for us to attain Mr President’s Decade of Gas vision,” he said.

Ojulari also commended the enabling environment and private-sector support promoted under President Bola Tinubu’s administration.