The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six strategic gas agreements with key industry partners in a move aimed at accelerating Nigeria’s gas-based industrialisation, strengthening energy security and stimulating economic growth.
The agreements, executed on the sidelines of the 25th NOG Energy Week in Abuja on Tuesday, include 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 FLNG, and Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration & Production Limited (NEPL).
Speaking during the signing ceremony, the Group Chief Executive Officer of NNPC Ltd, Engr. Bayo Bashir Ojulari, described the agreements as a major step towards advancing the Federal Government’s gas-based industrialisation agenda.
He said the deals represent more than contractual commitments, noting that they are designed to unlock Nigeria’s industrial potential through expanded gas utilisation.
“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 potential to drive industrial development in Nigeria,” Ojulari said.
According to him, the agreements reflect NNPC Ltd’s commitment to transparency, efficiency and the development of a standardised framework for nationwide gas utilisation. He added that they would expand domestic gas supply, strengthen energy security and position gas as a catalyst for economic transformation.
Ojulari further stated that the partnerships would enhance local content development and reinforce NNPC Ltd’s position as a preferred partner in Nigeria’s evolving energy sector.
A major highlight of the ceremony was the MoU between NNPC Ltd and Ajaokuta Steel Company Limited, which extends collaboration beyond gas supply to support the production of raw materials for oil and gas pipelines. The initiative is expected to support strategic infrastructure projects, including the African Atlantic Gas Pipeline (AAGP) and the Escravos-Lagos Pipeline System (ELPS) Phase 3.
The agreement 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 MoU was complemented by the signing of a 20-year Gas Sale and Aggregation Agreement involving NNPC E&P Limited (NEPL), the Gas Aggregation Company of Nigeria (GACN) and ASCL. Under the arrangement, ASCL will receive 3 million standard cubic feet per day (MMscf/d) of firm gas supply and 47 MMscf/d of interruptible gas volumes to fuel the power plant serving the steel complex.
In another significant 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 natural gas resources.
The agreement provides for the supply of 200 MMscf/d of gas to the UTM Floating Liquefied Natural Gas (FLNG) project, providing the long-term feed gas required to secure project financing and support a Final Investment Decision expected in the fourth quarter of 2026.
NNPC Ltd also announced the migration of legacy interconnection agreements to the Nigerian Gas Transportation Network Code through the execution of Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL.
The agreements are expected to inject up to 800 MMscf/d of natural gas into Nigeria’s domestic transportation network, boosting supply to power plants, gas-based industries and industrial clusters while improving network connectivity, operational flexibility and overall gas supply security.
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 signed during the milestone 25th NOG Energy Week, themed “Advancing Energy Ambitions for Competitive and Resilient Economies,” which highlighted the importance of strategic partnerships in driving sustainable energy development and industrial growth in Nigeria.
