The Nigeria Liquefied Natural Gas Limited (NLNG) and several upstream gas suppliers have signed long-term Gas Supply Agreements (GSAs) to deliver 1.29 billion standard cubic feet per day (bcf/d) of feedgas.

The 20-year agreement is aimed at bridging the prolonged shortfall in upstream gas availability, enhancing NLNG’s capacity to meet its commercial commitments while laying the groundwork for expansion. It also aligns with the Federal Government’s Decade of Gas initiative, which places natural gas at the centre of Nigeria’s industrialisation and energy transition agenda.

The agreements were signed at the NNPC Towers in Abuja on Friday by 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 firm, in a statement signed by its General Manager, External Relations and Sustainable Development, Sophia Horsefall, described this as a significant milestone.
Speaking on the agreements, NLNG’s Managing Director and Chief Executive Officer, Philip Mshelbila, described the milestone as the culmination of sustained efforts by shareholders and stakeholders to address long-standing gas supply constraints.

He noted that in recent years, NLNG’s operations had been significantly impacted by pipeline disruptions, including vandalism and sabotage, affecting upstream gas availability.

“NLNG recognises the challenges that the consequent insufficiency of gas supply has caused to its long-term buyers, customers, shareholders, and more widely to the Nigerian economy. With the new GSAs, NLNG is optimistic of a sustainable gas supply for the future, 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.

He further explained that the new GSAs mark a historic shift for NLNG, which, since its inception, had relied primarily on legacy shareholder joint venture affiliates for gas supply.

He said that with the recent divestment of onshore assets by several International Oil Companies (IOCs) to non-shareholder entities, NLNG is now procuring feedgas from diverse third-party suppliers to meet its growing needs for both Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) production.

The landmark GSAs are a game-changer for Nigeria’s gas industry, enhancing local gas production capacity and improving gas supply, which are critical to the country’s energy security, industrialisation aspirations, and economic growth.