By Tekena Amieyeofori
The Nigerian National Petroleum Company (NNPC) Limited has entered into six strategic gas agreements with key industry players to boost domestic gas use, shore up energy security, and push Nigeria’s industrial growth.
The deals were signed on the sidelines of the 25th NOG Energy Week in Abuja, according to a Wednesday statement by NNPC’s Chief Corporate Communications Officer, Andy Odeh.
NNPC said the agreements, which include an MoU, gas supply contracts, and gas transportation arrangements, mark a significant step toward expanding gas infrastructure and supporting economic development.
Key highlights of the agreements:
Ajaokuta Steel Partnership
NNPC signed an MoU with Ajaokuta Steel Company Limited (ASCL) to expand cooperation beyond gas supply. The goal is to support local steel production for Nigeria’s oil and gas sector.
The partnership is expected to help ASCL produce steel pipes needed for major projects like the African-Atlantic Gas Pipeline and the Escravos-Lagos Pipeline System Phase 3.
20-Year Gas Sale Aggregation Deal
A Gas Sale Aggregation Agreement was signed between NNPC Exploration and Production Limited (NEPL), the Gas Aggregation Company of Nigeria (GACN), and ASCL.
Under the deal, ASCL will get 3 million standard cubic feet of gas daily as firm contract volumes, with additional 47MMscf/d on an interruptible basis to power the Ajaokuta Steel Complex.
UTM Floating LNG Feed Gas Agreement
The NNPC/Seplat Energy Producing Nigeria Unlimited Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM Floating LNG Limited.
The deal guarantees 200MMscf/d of gas for the UTM Floating LNG project. NNPC said the long-term supply will help secure project financing and set the stage for a Final Investment Decision expected in the last quarter of 2026.
Network Code Migration
NNPC also migrated legacy gas interconnection agreements to the Nigerian Gas Transportation Network Code. Network Entry Agreements were signed with Chevron Nigeria Limited, ANOH Gas Processing Company, and NEPL.
The company said these agreements will deliver up to 800MMscf/d of natural gas into the domestic pipeline network for power plants, gas-based industries, and industrial clusters nationwide.
NNPC added that this will improve supply reliability, boost network connectivity, and increase flexibility in the domestic gas market.
Speaking at the event, Group Chief Executive Officer Bayo Ojulari said the agreements align with the Federal Government’s plan to drive industrialisation with gas and reflect NNPC’s push to expand domestic utilisation.
“What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialisation,” Ojulari said.
“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 added that the deals show NNPC’s commitment to transparency, efficiency, and a standardised framework for gas use. The partnerships, he noted, will also boost local content, strengthen energy security, and support long-term economic transformation. He described NNPC as “the partner of choice” for Nigeria’s gas sector.