Nigeria LNG Signs 20-Year Gas Supply Deals to Secure Expansion and Strengthen Global Market Role

Edited By: Safae Fathi

Nigeria LNG Ltd has signed 20-year gas supply agreements with NNPC Ltd and several oil companies to secure 1.29 billion standard cubic feet per day for its existing liquefaction plants and future expansion. The contracts, which include extension options, involve firms such as Shell Nigeria, Oando Group, Aradel Holdings, and First E&P, and are intended to address persistent upstream supply gaps while supporting the country’s energy transition and industrial growth.

The volumes will be scaled up gradually to feed the $10 billion Train-7 gas facility on Bonny Island in Rivers State, which is currently 80% complete. NNPC Group Chief Executive Bayo Ojulari stated that the agreements create opportunities for collaboration and shared development, while NLNG Managing Director Philip Mshelbila emphasized their role in diversifying feedgas sources and reducing reliance on vulnerable pipelines that have faced frequent disruptions.

Nigeria, Africa’s leading LNG exporter, has long grappled with gas shortages that constrained domestic power generation and export potential despite its vast reserves. By securing long-term supply commitments, NLNG aims to strengthen reliability for its six-train complex and ensure the timely delivery of Train-7, a project expected to boost capacity by more than 30% and reinforce the country’s position in global LNG markets.