How NGML, Ssonic Petroleum sealed the strategic gas deal to power Nigeria’s energy future – Ezeala

The Managing Director, NNPC Gas Marketing Ltd, (NGML), Justin U. Ezeala, in this interview gives details of the recent landmark Gas Sale and Purchase Agreement (GSPA) between NGML and its Unincorporated Joint Venture (UJV) partner, NIPCO Gas Limited, with Ssonic Petroleum Limited for natural gas supply to Ssonic Petroleum Limited’s proposed Liquefied Natural Gas (LNG) plant at Lekki Free Trade Zone, Lagos State. Ssonic was represented by its CEO, Ifeoma Douglas. The agreement was executed on Thursday, 6th March 2025. Industry observers are of the view that the deal will drive industrial growth as NGML expands its gas dominance. JOHN SALAU brings the excerpts:

May we know the significance of this deal with Ssonic deal?

The signing of the 80mscf Gas Supply Agreement (GSPA) between NGML and Ssonic Petroleum Ltd is significant for so many reasons. First, it continues to amplify NGML as the leading gas marketer of choice.

Kindly throw more light on this?

We are able to provide gas solutions across a broad spectrum of the gas value chain by maintaining a vast portfolio of gas suppliers and services. This leverage means that we will continue to dominate the gas market in Nigeria and exceed our customer expectations. Secondly, discerning investors in the large-scale gas projects like LNG have come to regard NGML as a trusted and reliable partner able to provide consistent and value for money solutions. You know, this deal is a Gas Sale and Purchase Agreement (GSPA) between NGML and Sonic Petroleum Limited. And it is for 20 years.

Is it renewable after 20 years?

Yes, it is.

Of what strategic value is this to NGML growth?

The signing of the current agreement with Ssonic also showcases the quality of staff and level of expertise available to NGML. Together with our partner, NIPCO, we have commissioned a City Gate in Lekki Free Trade Zone and stand ready to reticulate gas throughout the Lekki FTZ.

Read also: NGML, Transit gas commissions 150m SCF facility to deepen gas utilisation in Southwest

Is this the first of its kind or there are others?

If you mean the first of this type of landmark deal, no, it is not at all. We’ve been involved in such strategic deals over the years. You will recall that the present Gas Supply Agreement with Ssonic Petroleum Ltd comes just a few months after a milestone gas supply agreement for 100mscf was signed by NGML and Dangote Refinery. No, it’s not the first landmark deal.

Navigating this deal must have been interesting. How did you come to ink it?

It was tough negotiations, and at the end of the day, we are delighted that Ssonic Petroleum Ltd chose the value proposition from NGML and its partner NiPCO. I wish to congratulate Ssonic Petroleum Ltd, our partner NIPCO and all the team in NGML for this truly amazing achievement. Under the terms of the agreement, the NGML-NIPCO UJV is to supply 80 million standard cubic feet per day (MMSCF/D) natural gas to the LNG plant for a 20-year period.

In terms of domestic utilisation, what are we looking at?

Gas supply to the LNG plant will further boost the domestic utilisation of natural gas for the industrial and economic development of the nation. NNPC continues to lead efforts in promoting the use of natural gas; a cleaner, cheaper and more environmentally friendly fuel. NGML will continue to lead the efforts to fully actualise the federal government’s vision for an outstanding future of industrial growth driven by Gas. Our team is available for more partnerships in this regard.