By Cross Udo, Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six strategic gas agreements with key industry partners in a move aimed at accelerating industrial growth, expanding domestic gas utilisation and strengthening Nigeria’s energy security.
The agreements were executed on the sidelines of the 25th NOG Energy Week in Abuja and cover gas supply, transportation and industrial collaboration initiatives designed to support the Federal Government’s gas-based industrialisation agenda.
The deals include a Memorandum of Understanding (MoU) and a Gas Sale and Aggregation Agreement with Ajaokuta Steel Company Limited (ASCL), a Gas Supply Agreement with UTM Floating LNG, as well as Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
Speaking at the signing ceremony, Group Chief Executive Officer of NNPC Ltd, Engr. Bayo Ojulari, described the agreements as a major step towards unlocking Nigeria’s industrial potential through gas utilisation.
“What we are witnessing today is not just about signing agreements; it is about igniting the engine of Nigeria’s industrialisation,” Ojulari said.
He stressed that gas remains the hydrocarbon with the greatest capacity to transform Nigeria’s economy.
According to him, the agreements reflect NNPC Ltd’s commitment to transparency, efficiency and the creation of a standardised framework for nationwide gas utilisation capable of unlocking additional domestic supply and stimulating economic growth.
A major highlight of the agreements was the partnership with Ajaokuta Steel Company aimed at reviving the steel complex and supporting the production of raw materials for oil and gas pipelines required for strategic infrastructure projects, including the African-Atlantic Gas Pipeline and the Escravos-Lagos Pipeline System Phase 3.
As part of the collaboration, NNPC E&P Limited, the Gas Aggregation Company of Nigeria and ASCL signed a 20-year Gas Sale and Aggregation Agreement under which the steel company will receive 50 million standard cubic feet of gas per day to power its operations and support the revitalisation of the complex.
NNPC Ltd and its joint venture partner, Seplat Energy Producing Nigeria Unlimited, also signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG to supply 200 million standard cubic feet of gas per day to the floating LNG project.
The arrangement is expected to provide the long-term feed gas assurance required to secure financing and support a Final Investment Decision on the project by the fourth quarter of 2026.
In another development, NNPC announced the migration of existing interconnection arrangements to the Nigerian Gas Transportation Network Code through Network Entry Agreements with Chevron, AGPC and NEPL.
The agreements will inject up to 800 million standard cubic feet of gas per day into the domestic gas transportation network to supply power plants, gas-based industries and industrial clusters across the country.
Ojulari said the agreements herald a new era of strategic partnerships that will deepen local content development, improve energy security and strengthen Nigeria’s position as an emerging industrial powerhouse.
The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; Special Adviser to the President on Energy, Olu Verheijen, as well as top officials of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The agreements were concluded during the milestone 25th NOG Energy Week themed “Advancing Energy Ambitions for Competitive and Resilient Economies,” which focused on the role of partnerships in driving sustainable energy and industrial development in Nigeria
