By Stella Odueme
The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six landmark gas agreements with strategic partners in a move aimed at accelerating industrial development, expanding domestic gas utilisation and strengthening Nigeria’s energy security.
The agreements, executed on the sidelines of the 25th NOG Energy Week in Abuja, include a Memorandum of Understanding (MoU) and a Gas Sale and Aggregation Agreement (GSAA) with Ajaokuta Steel Company Limited (ASCL), a Gas Sale Agreement (GSA) with UTM Floating LNG (UTM FLNG), and Network Entry Agreements with Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
NNPC Group Chief Executive Officer, Engr. Bayo Bashir Ojulari in a statement on Thursday, described the agreements as a major step towards implementing the Federal Government’s gas-based industrialisation agenda and unlocking Nigeria’s economic potential.
“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 capacity to transform Nigeria’s industrial landscape more than any other hydrocarbon,” Ojulari said.
He said the agreements demonstrate NNPC Ltd.’s commitment to transparency, efficiency and the establishment of a standardised framework for nationwide gas utilisation, adding that they would unlock new domestic gas supply and reinforce natural gas as a catalyst for economic transformation.
According to him, the partnerships also mark the beginning of a new phase of collaboration that will deepen local content, enhance energy security and position Nigeria as a competitive industrial economy.
A major highlight of the signing ceremony was the partnership between NNPC Ltd and Ajaokuta Steel Company Limited, aimed at revitalising the Ajaokuta Steel Complex and expanding domestic gas utilisation under the Nigerian Gas Transportation Network Code.
Under the Memorandum of Understanding, both organisations also agreed to collaborate on the production of steel pipes for critical energy infrastructure, including the proposed African Atlantic Gas Pipeline (AAGP) and the Escravos-Lagos Pipeline System (ELPS) Phase III.
In addition, NNPC Exploration and Production Limited (NEPL), the Gas Aggregation Company of Nigeria (GACN) and ASCL signed a 20-year Gas Sale and Aggregation Agreement to supply three million standard cubic feet per day (MMscf/d) of firm gas and 47MMscf/d of interruptible gas to power the Ajaokuta Steel Complex.
NNPC Ltd and its Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture also 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, a move expected to provide long-term feed gas security, facilitate project financing and support a Final Investment Decision (FID) scheduled for the fourth quarter of 2026.
NNPC, partners sign six strategic gas deals to drive industrial growth, energy security
