The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed six strategic agreements with key industry partners to deepen gas utilisation, strengthen energy security and accelerate Nigeria’s gas-based industrialisation drive.
The agreements signed on the sidelines of the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja on Tuesday include a Memorandum of Understanding (MoU) and a Gas Sale and Aggregation Agreement (GSAA) with Ajaokuta Steel Company Ltd. (ASCL).
The agreements also include a Gas Sale Agreement (GSA) with UTM Floating LNG (FLNG), and three Network Entry Agreements (NEnAs) with Chevron Nigeria Ltd., AGPC and NNPC Exploration and Production Ltd. (NEPL).
Speaking at the signing, Mr Bashir Ojulari, Group Chief Executive Officer, NNPC Ltd., described the agreements as a major step toward implementing the Federal Government’s gas-based industrialisation agenda.
Ojulari said the agreements would unlock new domestic gas supply, strengthen the Nigerian Gas Transportation Network Code and position gas as a catalyst for economic transformation.
“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 also said that the agreements reflected NNPC Ltd.’s commitment to transparency, operational efficiency and strategic partnerships that would promote local content, enhance energy security and attract investment into the country’s gas value chain.
A major highlight of the ceremony was the partnership with ASCL, under which both organisations agreed to collaborate on reviving the Ajaokuta Steel Complex and expanding domestic gas utilisation.
The MoU also seeks to support local production of steel pipes required for strategic infrastructure projects, including the African Atlantic Gas Pipeline (AAGP) and the Escravos-Lagos Pipeline System (ELPS) Phase three.
The accompanying 20-year GSAA, signed by NEPL, Gas Aggregation Company of Nigeria (GACN) and ASCL, provides for the supply of three million standard cubic feet per day (MMscf/d) of gas and 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 feed gas needed to support project financing and pave the way for a Final Investment Decision (FID) expected in the fourth quarter of 2026.
In addition, NNPC Ltd. signed Network Entry Agreements with Chevron Nigeria Ltd., AGPC and NEPL to migrate legacy 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 supplies to power plants, gas-based industries and industrial clusters while enhancing network efficiency and reliability.
The signing was witnessed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo and the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri and the Special Adviser to the President on Energy, Mrs Olu Verheijen.
Others were the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan; and the Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar.(NAN)
