The Nigerian National Petroleum Company Limited has signed six strategic gas agreements with industry partners as part of efforts to deepen gas utilisation, accelerate industrialisation and strengthen Nigeria’s energy security.
The agreements were signed on the sidelines of the 25th NOG Energy Week in Abuja on Tuesday and include a Memorandum of Understanding and a Gas Sale and Aggregation Agreement with the Ajaokuta Steel Company Limited, a Gas Supply Agreement with UTM FLNG Limited, and Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited.
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, said the agreements aligned with the Federal Government’s gas-based industrialisation agenda and would unlock new opportunities for 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. It is also the only product that can have that level of industrial impact on Nigeria, more than any other hydrocarbon,” he said.
Ojulari noted that the agreements would establish a transparent and standardised framework for nationwide gas utilisation, expand domestic gas supply and reinforce the role of natural gas in driving industrial development.
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A key aspect of the agreements is the partnership with the Ajaokuta Steel Company Limited, which is expected to support the revitalisation of the steel complex and facilitate the production of steel pipes for critical oil and gas infrastructure, including the African Atlantic Gas Pipeline and the Escravos-Lagos Pipeline System Phase 3.
The parties also executed a 20-year Gas Sale and Aggregation Agreement involving NNPC Exploration and Production Limited, the Gas Aggregation Company of Nigeria and Ajaokuta Steel Company Limited.
Under the agreement, the steel company will receive three million standard cubic feet per day of firm gas supply and 47 million standard cubic feet per day of interruptible gas supply to power its operations.
In a separate deal, the NNPC Ltd./Seplat Energy Producing Nigeria Unlimited Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited to supply 200 million standard cubic feet of gas per day to the UTM Floating LNG project.
According to NNPC, the agreement provides the long-term gas supply needed to support financing for the project and positions it for a Final Investment Decision in the fourth quarter of 2026.
The company also signed Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited under the Nigerian Gas Transportation Network Code.
NNPC said the agreements would inject up to 800 million standard cubic feet of gas per day into the domestic gas transportation network, boosting supply to power plants, gas-based industries and industrial clusters across the country.
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; and senior officials of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
