Nigeria’s gas ambitions ignite as batch of deals pushes energy security agenda forward

July 8, 2026, by Melisa Cavcic

The Nigerian National Petroleum Company (NNPC) has sealed multiple gas agreements to unleash Nigeria’s gas aspirations as a catalyst for industrial growth and enhance the African nation’s energy security.

NNPC has signed six strategic agreements, ranging from a memorandum of understanding (MoU) with Ajaokuta Steel Company Limited (ASCL); a gas sale aggregation agreement (GSAA) with ASCL; a gas supply agreement (GSA) with UTM FLNG; a network entry agreement with Chevron Nigeria; another network entry agreement with AGPC; and a third such deal with NNPC Exploration & Production Ltd (NEPL).

These deals are said to mark a significant milestone in Nigeria’s journey toward the government’s gas-based industrial revitalization and enhanced energy security. The signing of the agreements was witnessed by Ekperikpe Ekpo, Minister of Petroleum (Gas); Senator Heineken Lokpobiri, Minister of Petroleum ( Oil); Olu Verheijen, Special Adviser to President on Energy; Oritsemeyiwa Eyesan, Commission Chief Executive of NUPRC; and Rabiu Umar, Authority Chief Executive of NMDPRA.

Bayo Bashir Ojulari, GCEO NNPC, commented: “What we are witnessing today is not just about signing agreements. It is about igniting the engine of Nigeria’s industrialization. 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.”

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NNPC describes the MoU with ASCL as the cornerstone of the signing ceremony, as the duo committed to extend collaboration beyond gas supply, aiming to catalyze 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.

This MoU is anchored in two pillars, including the revitalization of the Ajaokuta Steel Complex and the expansion of domestic gas utilization through the Nigerian Gas Transportation Network Code. The deal was complemented by the execution of a 20-year GSAA between NEPL, Gas Aggregation Company of Nigeria (GACN), and ASCL.

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The agreement will see the supply of 3 million standard cubic feet of gas per day (scf/d) of firm contract volumes and 47 million scf/d of interruptible contract volumes to be used as feedstock for the power plant servicing the steel complex. NNPC and Seplat’s joint venture (JV) took a major step toward commercializing the country’s vast natural gas resources by signing a 15-year wet gas sale and purchase agreement (WGSPA).

The deal was inked between the NNPC/Seplat Energy Producing Nigeria Unlimited (SEPNU) joint venture and UTM FLNG, enabling the JV to supply 200 million scf/d to the UTM FLNG project, providing the long-term feedgas required to support financing and position the project for a final investment decision (FID) in the fourth quarter of 2026.

In addition, NNPC revealed the migration of legacy interconnection agreements to the new Nigerian Gas Transportation Network Code, which involved the signing of network entry agreements (NEnAs) with three major gas producers, including Chevron, AGPC, and NEPL.

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This batch of deals will inject up to 800 million scf/d of natural gas into the domestic transportation network to serve the African country’s power plants, Gas-Based Industries (GBIs), and industrial clusters, significantly enhancing network connectivity and operational flexibility while improving the security of gas supply.

Ojulari describes the latest agreements as a testament to NNPC’s shared commitment to transparency, efficiency, and a standardized framework for nationwide gas utilization, which will unlock new supply capacity for the domestic market and solidify the role of gas as a catalyst for economic transformation.

He also claims that these deals signal a new era of strategic partnerships that will drive local content, enhance energy security, and accelerate Nigeria’s journey toward becoming a global industrial powerhouse.

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