NNPC signs six gas agreements to strengthen energy security and drive industrial growth

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed six strategic agreements with key industry partners aimed at expanding domestic gas utilisation, enhancing energy security and accelerating Nigeria’s gas-driven industrialisation agenda.

The agreements, signed on the sidelines of the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja, include a Memorandum of Understanding (MoU) and a Gas Sale and Aggregation Agreement (GSAA) with Ajaokuta Steel Company Limited (ASCL).

Also signed were a Gas Sale Agreement (GSA) with UTM Floating LNG (FLNG), alongside three Network Entry Agreements (NEnAs) with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).

Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Ltd., Bashir Ojulari, described the agreements as a significant milestone in advancing the Federal Government’s gas-based industrialisation strategy.

Ojulari said the agreements would unlock additional domestic gas supply, reinforce the Nigerian Gas Transportation Network Code and position natural gas as a key driver of economic growth.

“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation.

“Gas is not only a source of revenue and profit, but also the hydrocarbon with the greatest potential to transform Nigeria’s economy,” he said.

He added that the agreements demonstrated NNPC Ltd.’s commitment to transparency, operational efficiency and strategic partnerships that would promote local content, strengthen energy security and attract investment across the country's gas value chain.

A major highlight of the ceremony was the partnership with ASCL, under which both organisations agreed to work together to revive the Ajaokuta Steel Complex and expand domestic gas utilisation.

The MoU also provides a framework for supporting local production of steel pipes required for major infrastructure projects, including the African Atlantic Gas Pipeline (AAGP) and Phase Three of the Escravos-Lagos Pipeline System (ELPS).

The accompanying 20-year GSAA, signed by NEPL, the Gas Aggregation Company of Nigeria (GACN) and ASCL, provides for the supply of three million standard cubic feet of gas per day (MMscf/d), in addition to 47 MMscf/d of interruptible gas, to power the Ajaokuta Steel Complex.

NNPC Ltd. and its Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture also signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Ltd.

Under the agreement, the joint venture will supply 200 MMscf/d of gas to the UTM FLNG project, providing the feedstock required to support project financing and pave the way for a Final Investment Decision (FID), which is expected in the fourth quarter of 2026.

In addition, NNPC Ltd. signed Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL to migrate existing interconnection arrangements to the Nigerian Gas Transportation Network Code.

The agreements are expected to inject up to 800 MMscf/d of natural gas into the domestic gas transportation network, improving supply to power plants, gas-based industries and industrial clusters, while enhancing the efficiency and reliability of the national gas network.

The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; and the Special Adviser to the President on Energy, Olu Verheijen.

Also present were the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, and the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar.