… Deals Set to Catalyse Industrial Growth, Enhance Nigeria’s Energy Security
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six strategic gas agreements with key industry partners in a major move aimed at accelerating Nigeria’s gas-based industrialisation agenda, strengthening energy security and driving sustainable economic growth.
Engr. Bashir Bayo Ojulari, The Group Chief Executive Officer of NNPC Ltd, announced the agreements during the 25th NOG Energy Week in Abuja on Tuesday, describing the deals as a landmark achievement that would unlock new opportunities for industrial development and expand domestic gas utilisation across the country.
The agreements comprise a Memorandum of Understanding (MoU) with Ajaokuta Steel Company Limited (ASCL); a Gas Sale and Aggregation Agreement (GSAA) with ASCL; a Gas Supply Agreement (GSA) with UTM Floating Liquefied Natural Gas (UTM FLNG); and three Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
The agreements reaffirm NNPC Ltd’s commitment to supporting the Federal Government’s gas-based industrialisation policy through strategic partnerships capable of stimulating economic growth and enhancing Nigeria’s energy security, Ojulari said.
He said, “What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation. Gas is the key. It is a source of revenue and profit, but more importantly, it has the greatest industrial impact on Nigeria compared to any other hydrocarbon,”.
The agreements demonstrate the company’s commitment to transparency, efficiency and the implementation of a standardised framework for nationwide gas utilisation, adding that they would unlock additional gas supply for the domestic market while reinforcing gas as a catalyst for economic transformation, he explained.
According to him, the partnerships signal a new era of collaboration that will promote local content development, improve energy security and position Nigeria as a leading industrial hub.
Ojulari described NNPC Ltd as the partner of choice in Nigeria’s energy sector, expressing confidence that the agreements would pave the way for stronger collaboration with industry stakeholders.
A major highlight of the ceremony was the Memorandum of Understanding between NNPC Ltd and Ajaokuta Steel Company Limited, under which both organisations agreed to deepen collaboration beyond gas supply to support the production of raw materials for oil and gas pipelines.
The initiative is expected to facilitate the delivery of critical infrastructure projects, including the African Atlantic Gas Pipeline (AAGP) and the Escravos-Lagos Pipeline System (ELPS) Phase 3.
The MoU is built on two key objectives: the revitalisation of the Ajaokuta Steel Complex and the expansion of domestic gas utilisation through the Nigerian Gas Transportation Network Code.
The partnership was further strengthened through the signing of a 20-year Gas Sale and Aggregation Agreement involving NNPC Exploration and Production Limited (NEPL), the Gas Aggregation Company of Nigeria Limited/GTE (GACN) and ASCL.
Under the agreement, ASCL will receive three million standard cubic feet of gas per day (MMscf/d) as firm contract volumes and an additional 47MMscf/d as interruptible contract volumes to serve as feedstock for the power plant supporting the steel complex.
In another major development, the NNPC Ltd/Seplat Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited to commercialise Nigeria’s abundant natural gas resources.
The agreement provides for the supply of 200 million standard cubic feet of gas per day (MMscf/d) to the UTM Floating LNG project, providing long-term feed gas certainty required to support project financing and facilitate a Final Investment Decision expected in the fourth quarter of 2026.
NNPC Ltd also advanced the implementation of the Nigerian Gas Transportation Network Code by migrating existing interconnection arrangements into the new regulatory framework through the signing of Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL.
The three agreements are expected to inject up to 800MMscf/d of natural gas into Nigeria’s domestic transportation network, increasing gas availability for power generation, gas-based industries and industrial clusters across the country while improving network connectivity, operational flexibility and supply reliability.
The signing ceremony was witnessed by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Special Adviser to the President on Energy, Ms. Olu Verheijen; the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan; and the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar.
The agreements were concluded on the sidelines of the milestone 25th NOG Energy Week, themed “Advancing Energy Ambitions for Competitive & Resilient Economies,” which highlighted the importance of strategic partnerships in advancing Nigeria’s energy transition, industrial development and long-term economic resilience.
