KEY POINTS

• Fairness in gas pricing will support Nigeria’s economic reforms.

• NLNG secures 20-year gas supply to boost reliability.

• Nigeria’s gas reserves remain central to industrial growth.

The Nigerian National Petroleum Company Limited joined hands with upstream gas suppliers to sign 20-year Gas Supply Agreements with Nigeria LNG.

The deal secures 1.29 billion standard cubic feet of Feedgas daily, reshaping Nigeria’s energy market and boosting industrial growth.

Friday’s Abuja signing included extension options and united Amni International, Sunlink Energies, First Exploration, Shell, NNPC subsidiaries, Oando Group, and Aradel.

NNPC’s chief executive, Bayo Ojulari, called the agreements a breakthrough that could unlock long-awaited opportunities across Nigeria’s evolving gas industry.

Ojulari stressed the partnerships show risk-sharing, collaboration, and synergies required to deliver President Bola Tinubu’s ambitious decade-long “Decade of Gas” plan.

Fairness in gas pricing at the center

Ojulari also praised the federal government’s policy direction, noting that recent executive orders issued by President Tinubu had created a supportive climate for investment.

He pledged that NNPC would accelerate implementation of the reforms to boost supply and meet national energy targets.

Philip Mshelbila, managing director of NLNG, said the new agreements represent a turning point, describing them as critical to restoring supply reliability for the company’s Bonny Island plant.

According to him, the GSAs will strengthen Nigeria’s industrialisation efforts and reinforce its position in the global gas market.

“These agreements restore reliability of supply and keep us on the path of growth and expansion,” Mshelbila said.

Fairness in gas pricing will drive reforms

Nigeria, which has more than 200 trillion cubic feet of proven natural gas reserves, has struggled with supply bottlenecks that disrupted both domestic use and exports.

NLNG, which once operated its six-train plant at nearly full capacity, has in recent years struggled with Feedgas shortages.

QAccording to Business Day, GSAs are expected to bridge the shortfall, underpin NLNG’s expansion drive, and accelerate the country’s energy transition agenda.

The deal could mark a turning point, boosting local production capacity while also securing fairness in gas pricing to ensure long-term sustainability.