The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed six major gas agreements with industry partners to deepen domestic gas utilisation, revive the Ajaokuta Steel Complex and strengthen Nigeria's energy security as the country pushes ahead with its gas-led industrialisation agenda.
The agreements, signed during the 25th NOG Energy Week in Abuja, cover gas supply, transportation and infrastructure development involving Ajaokuta Steel Company Limited (ASCL), UTM Floating LNG (UTM FLNG), Chevron Nigeria Limited, AGPC and NNPC Exploration and Production Limited (NEPL).
NNPC Group Chief Executive Officer, Engr. Bayo Bashir Ojulari, said the deals represent more than commercial transactions, describing them as strategic investments that will stimulate industrial development and economic growth.
According to him, natural gas remains Nigeria's most important resource for driving industrialisation, creating jobs and improving national energy security.
He said the agreements also reinforce NNPC's commitment to building a transparent and efficient gas market capable of expanding supply to industries and other domestic consumers.
A major feature of the agreements is a Memorandum of Understanding between NNPC Ltd and Ajaokuta Steel Company aimed at supporting the revival of the steel plant while encouraging the local production of steel pipes required for major gas pipeline projects, including the African Atlantic Gas Pipeline and the Escravos-Lagos Pipeline System Phase III.
The companies also signed a 20-year Gas Sale and Aggregation Agreement under which NNPC Exploration and Production Limited and the Gas Aggregation Company of Nigeria will supply up to 50 million standard cubic feet of gas per day to power facilities at the Ajaokuta Steel Complex.
In another milestone, the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited to deliver 200 million standard cubic feet of gas daily to the UTM Floating LNG project.
The agreement is expected to provide long-term feed gas security for the project and support its planned Final Investment Decision later this year.
NNPC also completed the migration of legacy gas transportation arrangements by signing Network Entry Agreements with Chevron Nigeria Limited, AGPC and NEPL under the Nigerian Gas Transportation Network Code.
The agreements will inject as much as 800 million standard cubic feet of natural gas per day into Nigeria's domestic gas transportation system, improving supply to power generation companies, gas-based industries and manufacturing clusters.
Industry stakeholders said the agreements will enhance network efficiency, strengthen supply reliability and support the Federal Government's drive to expand gas utilisation across the country.
The signing ceremony was attended by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; Special Adviser to the President on Energy, Olu Verheijen; and senior officials of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The agreements were concluded during the 25th NOG Energy Week, where government and industry leaders explored strategies for strengthening Nigeria's energy sector under the theme "Advancing Energy Ambitions for Competitive and Resilient Economies."