By Our Correspondent
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six strategic gas agreements with key industry partners aimed at accelerating industrialisation, expanding domestic gas utilisation and strengthening Nigeria’s energy security.
The agreements, signed on the sidelines of the 25th NOG Energy Week in Abuja, include a Memorandum of Understanding (MoU) with Ajaokuta Steel Company Limited (ASCL), a Gas Sale and Aggregation Agreement (GSAA) with ASCL, a Gas Sale Agreement (GSA) with UTM FLNG, and three Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
Speaking at the signing ceremony on Tuesday, the Group Chief Executive Officer of NNPC Ltd, Engr. Bayo Bashir Ojulari, said the agreements align with the Federal Government’s gas-based industrialisation agenda and would support sustainable economic growth.
“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 than any other hydrocarbon,” he said.
Ojulari said the agreements reflected NNPC Ltd’s commitment to transparency, efficiency and a standardised framework for nationwide gas utilisation, adding that they would unlock new domestic gas supply capacity and reinforce gas as a catalyst for economic transformation.
He described the deals as the beginning of a new phase of strategic partnerships that would deepen local content, enhance energy security and position Nigeria as a major industrial hub.
A major highlight of the ceremony was the MoU between NNPC Ltd and Ajaokuta Steel Company Limited, which seeks to extend collaboration beyond gas supply to support the production of steel pipes for oil and gas infrastructure projects, including the African-Atlantic Gas Pipeline (AAGP) and the Escravos-Lagos Pipeline System (ELPS) 3.
The MoU focuses on revitalising the Ajaokuta Steel Complex and expanding domestic gas utilisation through the Nigerian Gas Transportation Network Code.
The parties also signed a 20-year Gas Sale and Aggregation Agreement involving NNPC Exploration and Production Limited (NEPL), the Gas Aggregation Company of Nigeria (GACN) and ASCL. Under the agreement, 3 million standard cubic feet per day (MMscf/d) of firm gas and 47 MMscf/d of interruptible gas will be supplied to power the steel complex.
In another development, the NNPC Ltd/Seplat Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited under which the joint venture will supply 200 MMscf/d of gas to the UTM Floating LNG project.
According to NNPC Ltd, the agreement is expected to provide the long-term feedgas supply required to support financing and facilitate a Final Investment Decision (FID) for the project in the fourth quarter of 2026.
The company also signed three Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL as part of efforts to migrate legacy interconnection agreements to the Nigerian Gas Transportation Network Code.
NNPC Ltd said the agreements would inject up to 800 MMscf/d of natural gas into the domestic transportation network, improving gas supply to power plants, gas-based industries and other industrial consumers while enhancing network efficiency and flexibility.
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, Olu Verheijen; the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe; and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
The agreements were signed during the 25th NOG Energy Week, themed “Advancing Energy Ambitions for Competitive and Resilient Economies.”
