July 8 (THEWILL) — The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed six strategic agreements with major industry stakeholders aimed at expanding domestic gas utilisation, strengthening energy security, and accelerating Nigeria’s gas-based industrialisation agenda.
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 the Ajaokuta Steel Company Limited, a Gas Sale Agreement (GSA) with UTM Floating LNG Limited, as well as three Network Entry Agreements (NEnAs) involving Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
Speaking during the signing ceremony, Bashir Ojulari, Group Chief Executive Officer of NNPC Ltd., described the agreements as a significant milestone in the Federal Government’s drive to leverage Nigeria’s abundant gas resources to stimulate industrial growth, create jobs, and enhance national energy security.
According to him, the agreements will unlock additional domestic gas supply, strengthen implementation of the Nigerian Gas Transportation Network Code, and position natural gas as a key driver of economic diversification.
“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,” Ojulari said.
He added that the agreements underscore NNPC Ltd.’s commitment to transparency, operational excellence, and strategic partnerships capable of deepening local content, attracting fresh investments into the gas value chain, and ensuring reliable energy supply for industries and households.
A major highlight of the ceremony was the partnership between NNPC Ltd. and the Ajaokuta Steel Company, which is expected to support the long-awaited revival of the Ajaokuta Steel Complex through guaranteed gas supply and broader collaboration on gas-based industrial development.
Under the Memorandum of Understanding, both organisations will also work together to boost local manufacturing of steel pipes required for strategic national and regional infrastructure projects, including the African Atlantic Gas Pipeline (AAGP) and the third phase of the Escravos-Lagos Pipeline System (ELPS).
The accompanying 20-year Gas Sale and Aggregation Agreement, executed by NEPL, the Gas Aggregation Company of Nigeria, and ASCL, provides for the delivery of three million standard cubic feet of gas per day (3 MMscf/d), in addition to 47 MMscf/d of interruptible gas, to power operations at the Ajaokuta steel complex.
In another major transaction, NNPC Ltd. and its Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Ltd.
The agreement provides for the supply of 200 MMscf/d of gas to the UTM Floating LNG project, providing the feedstock required to secure project financing and facilitate a Final Investment Decision (FID) expected in the fourth quarter of 2026.
Industry stakeholders say the project is expected to expand Nigeria’s liquefied natural gas capacity, monetise stranded gas reserves, and increase the country’s export earnings from gas.
NNPC Ltd. also executed three Network Entry Agreements with Chevron Nigeria Ltd., AGPC, and NEPL to migrate existing interconnection arrangements into the Nigerian Gas Transportation Network Code.
The migration is expected to inject as much as 800 MMscf/d of natural gas into the domestic gas transportation network, significantly improving gas supply to power generation companies, gas-based industries, and manufacturing clusters across the country while enhancing the efficiency and reliability of Nigeria’s gas infrastructure.
The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo; the Minister of State for Petroleum Resources (Oil), 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, Oritsemeyiwa Eyesan, and the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Rabiu Umar.
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