… Deals Set to Catalyse Industrial Growth, Enhance Nigeria’s Energy Security
The Nigerian National Petroleum Company Limited (NNPC Ltd) today announced the signing of six strategic agreements with key partners, ranging from Memorandum of Understanding (MoU), Gas Supply Agreement (GSA), and other gas transportation deals, marking a significant milestone in Nigeria’s journey towards industrial revitalisation and enhanced energy security.
The agreements, executed on the sidelines of the ongoing 25th NOG Energy Week, in Abuja on Tuesday, include: an MoU with Ajaokuta Steel Company Limited (ASCL) ; a Gas Sale Aggregation Agreement (GSAA) with Ajaokuta Steel Company Limited (ASCL); a GSA with UTM FLNG; a Network Entry Agreement with Chevron Nigeria Ltd; a Network Entry Agreement with AGPC, and a Network Entry Agreement with NNPC Exploration & Production Ltd (NEPL).
According to the GCEO NNPC Ltd, Engr. Bayo Bashir Ojulari, the agreements underscore NNPC Ltd.’s commitment to advancing the Federal Government’s gas-based industrialisation agenda, driving sustainable economic growth and enhancing Nigeria’s energy security.
“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 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.”, Ojulari stated.
He particularly described the agreements as a testament to NNPC Ltd’s shared commitment to transparency, efficiency, and a standardised framework for Nationwide gas utilisation, which will unlock new supply capacity for the domestic market and solidify the role of gas as a catalyst for economic transformation.
Ojulari noted that the agreements signal a new era of strategic partnerships that will drive local content, enhance energy security and accelerate Nigeria’s journey towards becoming a global industrial powerhouse. He described NNPC Ltd as the partner of choice. “We are on a journey, even as we look forward to greater collaboration with industry partners.”
A cornerstone of the signing ceremony was the agreement with Ajaokuta Steel Company Limited (ASCL). In the MoU, NNPC Ltd. and ASCL commit to extend collaboration beyond gas supply, aiming to catalyse the production of raw materials for oil and gas pipes, a critical enabler for major infrastructure projects such as the African- Atlantic Gas Pipeline (AAGP) and the Escravos -Lagos Pipeline System (ELPS) 3.
The MoU is anchored on two major pillars: the revitalisation of the Ajaokuta Steel Complex and the expansion of domestic gas utilisation through the Nigerian Gas Transportation Network Code.
This was complemented by the execution of a 20-year Gas Sale and Aggregation Agreement (GSAA) between NNPC E&P Limited (NEPL), Gas Aggregation Company of Nigeria Ltd/Gte (GACN), and ASCL. This agreement will see the supply of 3MMscf/d of Firm Contract Volumes and 47MMscf/d of Interruptible Contract Volumes to be used as feedstock for the power plant servicing the steel complex .
NNPC Ltd/ Seplat JV also took a major step towards commercialising Nigeria’s vast natural gas resources by signing a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) between the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture and UTM FLNG Ltd.
Under the agreement, the Joint Venture will supply 200 million standard cubic feet of gas per day (MMscf/d) to the UTM Floating LNG (FLNG) project, providing the long-term feedgas certainty required to support financing and position the project for a Final Investment Decision (FID) in the fourth quarter of 2026.
Further demonstrating its commitment to a regulated and efficient gas market, NNPC Ltd. announced the successful migration of legacy interconnection agreements to the new Nigerian Gas Transportation Network Code. This involved the signing of Network Entry Agreements (NEnAs) with three major gas producers.
These agreements, signed with Chevron Nigeria Limited (CNL), AGPC, and NEPL, will inject up to 800MMscf/d of natural gas into the domestic transportation network. This will serve Nigeria’s power plants, Gas-Based Industries (GBIs), and industrial clusters, significantly enhancing network connectivity and operational flexibility while improving the security of gas supply.
The signing of the various landmark agreements was witnessed by the Honourable Minister of Petroleum (Gas), Rt. Hon. Ekperikpe Ekpo; Honourable Minister of Petroleum ( Oil), Senator Heineken Lokpobiri; Special Adviser to the President on Energy, Ms. Olu Verheijen; Commission Chief Executive of NUPRC, Mrs Oritsemeyiwa Eyesan and Authority Chief Executive of NMDPRA, Rabiu Umar.
These agreements came within the milestone 25th NOG Energy Week themed “Advancing Energy Ambitions for Competitive & Resilient Economies,” which spotlighted the critical role of strategic partnerships in delivering energy and industrial value.
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