NNPC signs 6 gas deals to drive industrial revital, energy security

The Nigerian National Petroleum Company Limited (NNPC) has signed six strategic agreements with key industry partners aimed at deepening gas utilisation, supporting industrial development and strengthening the country’s energy security.

The agreements, which include Memoranda of Understanding, gas supply arrangements and transportation agreements, were signed on the sidelines of the 25th NOG Energy Week in Abuja on Tuesday.

In a statement issued by Andy Odeh, Chief Corporate Communications Officer, NNPC Limited, the deals comprise a Memorandum of Understanding with Ajaokuta Steel Company Limited (ASCL), a Gas Sale and Aggregation Agreement with ASCL, a Gas Supply Agreement with UTM FLNG, and Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).

Speaking at the signing ceremony, Bashir Ojulari, the Group Chief Executive Officer of NNPC, said the agreements reinforce the company’s commitment to supporting the Federal Government’s gas-driven industrialisation strategy, stimulating economic growth and improving energy security.

According to him, the agreements represent more than commercial transactions, describing them as a major step towards accelerating Nigeria’s industrial development through greater utilisation of natural gas resources.

Ojulari noted that gas remains central to Nigeria’s economic ambitions, not only as a source of revenue but also as a critical driver of industrial growth with the potential to deliver greater economic impact than other hydrocarbon resources.

He said the agreements demonstrate NNPC’s commitment to transparency, operational efficiency and the creation of a standardised framework for gas utilisation across the country, adding that the deals would unlock additional domestic gas supply and strengthen the role of gas in economic transformation.

The NNPC chief further stated that the agreements signal the beginning of a new phase of strategic collaboration that would promote local content development, improve energy security and accelerate Nigeria’s emergence as an industrial economy. He described NNPC as a preferred partner for investors and industry stakeholders.

A major highlight of the signing ceremony was the agreement involving Ajaokuta Steel Company Limited, which seeks to expand cooperation beyond gas supply into the production of steel raw materials for the oil and gas industry.

The proposed collaboration is expected to support the manufacturing of pipes required for strategic infrastructure projects, including the African Atlantic Gas Pipeline and the third phase of the Escravos-Lagos Pipeline System expansion.

The memorandum is built around two major objectives: the revival of the Ajaokuta Steel Complex and the expansion of domestic gas consumption through the Nigerian Gas Transportation Network Code framework.

Complementing the agreement was the execution of 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 arrangement, the steel company will receive three million standard cubic feet per day of firm gas supply and an additional 47 million standard cubic feet per day of interruptible gas volumes to support electricity generation for the steel complex.

In another major development, the NNPC and Seplat joint venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited as part of efforts to commercialise Nigeria’s vast gas reserves.

The agreement provides for the supply of 200 million standard cubic feet of gas per day to the UTM Floating LNG project, giving the project the long-term feed gas assurance required to secure financing and support a final investment decision expected in the fourth quarter of 2026.

NNPC also announced the migration of existing interconnection agreements to the Nigerian Gas Transportation Network Code as part of efforts to improve efficiency and transparency in the domestic gas market.

As part of this transition, Network Entry Agreements were signed with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited.

The agreements are expected to inject as much as 800 million standard cubic feet of natural gas per day into Nigeria’s domestic transportation network, supplying power plants, gas-based industries and industrial clusters across the country.

According to NNPC, the additional gas volumes will improve network connectivity, increase operational flexibility and strengthen the reliability of gas supply to key sectors of the economy.