The Nigerian National Petroleum Company (NNPC) Ltd has signed a Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd, to supply the company gas for 20 years.
The deal, executed on March 6, 2025, will see NNPC Gas Marketing Ltd (NGML) and its joint venture partner, NIPCO Gas Ltd, supply 80 million standard cubic feet per day (mmscf/d) of natural gas to Ssonic Petroleum’s planned Liquefied Natural Gas (LNG) plant in the Lekki Free Trade Zone, Lagos State.
As contained in a statement issued on Friday by the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the deal will contribute to the expansion of Nigeria’s domestic gas supply.
He said the agreement, which will last for 20 years, aligns with NNPC Ltd’s broader strategy to promote gas as a cleaner, cost-effective, and environmentally sustainable energy source.
“The NNPC Gas Marketing Ltd, a subsidiary of the NNPC Ltd, and its Unincorporated Joint Venture partner, NIPCO Gas Ltd, have executed a Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd to supply natural gas to the company’s proposed Liquefied Natural Gas (LNG) plant in Lekki Free Trade Zone, Lagos State.
“Under the terms of the agreement which was executed on Thursday, 6th March 2025, the NGML-NIPCO UJV will supply 80million standard cubic feet (mmscf) per day of natural gas to the Ssonic Petroleum LNG plant for a period of 20 years,” the statement read in part.
By increasing domestic gas utilization, the deal is expected to support industrial growth, economic development, and Nigeria’s efforts to reduce its carbon footprint.
“The gas supply agreement is part of efforts by the NNPC Ltd to boost domestic gas utilization for industrial and economic growth of the nation and promote the use of gas as a cleaner, cheaper, and more environmentally friendly fuel in keeping with the goal of reducing global warming,” the statement added.
Soneye emphasized that the deal reinforces the company’s commitment to positioning natural gas as a key driver of Nigeria’s energy transition and economic growth.
What you should know
The administration of President Bola Tinubu has expressed commitment to developing Nigeria’s gas economy by boosting both production and supply.
- One of the initiatives driving the gas economy is the Presidential Compressed Natural Gas Initiative (PCNGi), which is tasked with the responsibility of improving gas mobility through CNG in Nigeria.
- The NNPCL and various other oil and gas companies have also been engaged through gas production and supply deals to ensure the availability of gas for domestic and industrial uses.
