Nigeria LNG Limited (NLNG) has secured long-term gas supply contracts with six major producers, a decisive move designed to tackle supply constraints and strengthen Nigeria’s position as a leading LNG exporter.
The 20-year Gas Supply Agreements (GSAs), signed with SNEPCO-SUNLINK HI Project, TEPNG-AMNI JV IMA Project, NNPCL-First E&P JV, SNG NGML, Oando-NNPC E&P, and TEPNG JV Ubeta, will deliver an estimated 1,290 million standard cubic feet per day (mmscf/d) of feedgas to NLNG’s Bonny Island plant.
For NLNG, which has in recent years struggled with supply shortfalls due to vandalism and upstream disruptions, the deals represent a lifeline. Its Managing Director, Dr. Philip Mshelbila, said the milestone underscores the company’s resilience and commitment to overcoming long-standing challenges.
“NLNG recognises the insufficiency of gas supply and the challenges it has caused not just for our shareholders but also for our long-term buyers and the Nigerian economy at large. These agreements restore reliability, sustainability, and confidence,” Mshelbila said.
The agreements are expected to enhance NLNG’s ability to meet commercial obligations to global buyers while boosting Nigeria’s export earnings. Analysts note that LNG exports account for a significant portion of Nigeria’s foreign exchange and play a vital role in stabilising government revenues.
Beyond exports, the deals also reinforce Nigeria’s Decade of Gas policy, which seeks to deepen gas utilisation domestically. A stable supply to NLNG ensures that by-products such as Natural Gas Liquids (NGLs) remain available for local industries, supporting power generation, petrochemicals, and manufacturing.
Industry stakeholders have hailed the move as a vote of confidence in Nigeria’s gas sector. By involving multiple suppliers, NLNG is reducing risk and creating more opportunities for indigenous producers to participate in the global LNG market.
“Without consistent gas supply, the LNG value chain is vulnerable. This agreement secures the backbone of the industry,” one analyst commented.
The milestone also highlights a broader energy security challenge. With international oil companies divesting, Nigeria is increasingly reliant on domestic and joint venture producers to fill the gap. NLNG’s pivot to third-party suppliers signals a more inclusive approach, where new entrants have a role in shaping the industry’s future.
For NLNG, the deals are not just about supply they are about ensuring long-term sustainability, competitiveness, and resilience in a rapidly changing global energy landscape, noted a press statement issued by Sophia Horsfall, General Manager, External Relations and Sustainable Development of NLNG.
