NNPC-NLNG diversifies supply base with 20-year gas supply agreements

Nigeria LNG Limited (NLNG) has signed long-term Gas Supply Agreements (GSAs) with six third-party suppliers, a strategic move aimed at strengthening feedgas supply to its Bonny Island plant and consolidating Nigeria’s position in the global gas market.

The 20-year contracts, which also have extension options, according to NLNG’s Managing Director and CEO, Dr. Philip Mshelbila, are expected to deliver about 1,290 million standard cubic feet per day (mmscf/d) of feedgas.

The agreements were signed with SNEPCO-SUNLINK HI Project, TEPNG-AMNI JV IMA Project, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta.

Speaking during the signing, Dr. Philip Mshelbila, said the milestone represents the culmination of collaborative efforts by shareholders, stakeholders, and partners in the energy sector.

He explained that the company had faced major challenges in recent years due to supply disruptions, pipeline vandalism, and sabotage, which affected gas availability from its traditional sources.

“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 stated.

The agreements also align with the Federal Government’s Decade of Gas initiative, which seeks to harness Nigeria’s vast natural gas reserves to drive industrialisation, energy security, and economic growth. With an estimated 200 trillion cubic feet of proven gas reserves, Nigeria is positioning gas as a central pillar of its transition to cleaner energy.

Industry experts have described the GSAs as a major boost for the country, noting that a reliable feedgas supply is critical for both domestic industries and export markets. The contracts will help NLNG meet its long-term commitments to international buyers, restore investor confidence, and strengthen Nigeria’s reputation as a reliable LNG supplier.

“This is a game-changer not only for NLNG but for Nigeria’s entire gas sector. It will help stabilise supply, boost exports, and generate more revenue for the economy,” said one energy analyst.

By diversifying its supply sources, NLNG is reducing dependence on legacy shareholder joint ventures and opening the door to a broader pool of indigenous and international gas producers. This shift reflects changing industry dynamics, with international oil companies divesting from onshore assets and new players emerging as major contributors.

For Nigeria, the agreements signal a renewed commitment to leveraging its gas wealth for national development, industrial growth, and global competitiveness.

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