By: Chioma Vivian James
Nigeria’s drive toward energy security, industrial expansion and economic resilience received a major boost as NNPC Limited signed a series of strategic gas supply and transportation agreements designed to deepen domestic gas utilization and unlock new investment opportunities across the energy value chain.
A key highlight was the strengthening of the partnership between NNPC Limited and Ajaokuta Steel Company Limited (ASCL) through the execution 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 long-term arrangement, ASCL will receive three million standard cubic feet of gas per day (MMscf/d) as firm contract volumes, alongside an additional 47MMscf/d of interruptible volumes. The gas will serve as critical feedstock for the power plant supporting the steel complex, reinforcing efforts to revive Nigeria’s strategic steel industry and stimulate industrial development.
In another significant milestone, the NNPC Ltd/Seplat Joint Venture entered into a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited. The agreement provides for the supply of 200MMscf/d of natural gas to the UTM Floating LNG project, creating the long-term feed gas certainty required to support project financing and pave the way for a Final Investment Decision (FID) expected in the fourth quarter of 2026.
The development underscores Nigeria’s commitment to monetizing its vast natural gas reserves while expanding its footprint in the global LNG market and attracting investment into gas infrastructure projects.
Further advancing the implementation of the Nigerian Gas Transportation Network Code, NNPC Limited also signed Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL. The agreements migrate existing interconnection arrangements into the new regulatory framework, promoting a more efficient, transparent and interconnected gas transportation system.
Collectively, the three agreements are expected to inject up to 800MMscf/d of natural gas into Nigeria’s domestic transportation network. This significant increase in supply will enhance gas availability for power generation, gas-based industries and industrial clusters nationwide, while improving network connectivity, operational flexibility and supply reliability.
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; the Special Adviser to the President on Energy, Olu Verheijen; the leadership of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, among other industry stakeholders.
The agreements were concluded on the sidelines of the 25th NOG Energy Week, themed “Advancing Energy Ambitions for Competitive & Resilient Economies.” The milestone event showcased the growing importance of strategic partnerships in driving Nigeria’s energy transition, strengthening industrial capacity and building a more resilient economy for the future.
With these landmark agreements, NNPC Limited has reinforced its position at the forefront of Nigeria’s gas commercialization agenda, laying the foundation for enhanced energy access, increased industrial productivity and sustainable economic growth.
