NNPCL/NLNG sign 20-year gas supply deals with six firms to strengthen Nigeria’s gas position

August 23, 2025 by Our Reporter

Nigeria LNG Limited (NLNG) has signed long-term Gas Supply Agreements (GSAs) with six third-party suppliers to secure feedgas for its Bonny Island plant and reinforce Nigeria’s role in the global gas market.

The 20-year deals, which include extension options, will deliver about 1,290 million standard cubic feet per day (mmscf/d) of feedgas. 

The suppliers are SNEPCO-SUNLINK HI Project, TEPNG-AMNI JV IMA Project, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.

NLNG Managing Director and CEO, Dr. Philip Mshelbila, described the agreements as a significant milestone achieved through collaboration with shareholders and industry partners. 

He noted that NLNG had faced challenges such as supply disruptions, pipeline vandalism, and sabotage, which affected feedgas availability.

“These agreements are a turning point in NLNG’s journey. They restore reliability of supply and ensure we remain firmly on the path of growth and expansion,” Mshelbila said.

The move supports the federal government’s Decade of Gas initiative, which aims to harness Nigeria’s 200 trillion cubic feet of proven gas reserves for industrialisation, energy security, and economic growth.

Industry experts hailed the GSAs as a major boost, saying they will help NLNG meet export commitments, stabilise domestic supply, restore investor confidence, and enhance Nigeria’s reputation as a dependable LNG supplier.

Analysts also see the agreements as a diversification strategy, reducing reliance on traditional shareholder joint ventures and bringing in more indigenous and international gas producers, amid industry shifts and divestments by international oil companies.

For Nigeria, the deals mark a renewed push to leverage its gas resources for economic development, industrial growth, and global competitiveness.