Nigeria LNG signs 20-year contracts to secure gas supply

Nigeria LNG secures multiple 20-year gas supply contracts

LAGOS, August 25, 2025 – Nigeria LNG (NLNG) has signed 20-year gas supply contracts with NNPC and international oil companies to secure 36.5 mcm (1.29 bcf) per day of natural gas, Reuters reported on Saturday.

The agreements include supply extension options and also involve Shell Nigeria, Oando Group, Aradel Holdings and First E&P. The supply will feed NLNG’s existing liquefaction facilities and capacity expansion projects aimed at addressing upstream gas shortfalls as Nigeria progresses on energy transition and industrialisation goals.

NLNG managing director Philip Mshelbila noted that the deals resolve gas supply issues caused by pipeline vandalism and sabotage, while diversifying feedgas sources after the divestment of onshore gas assets by international oil companies.

Supplied volumes will be scaled up to feed the USD 10-billion Train 7 at NLNG’s Bonny Island liquefaction plant. Currently around 80% complete, Train 7 will bring liquefaction capacity to 30 million tonnes per year (tpy) from 22 million tpy.

Nigeria LNG is jointly owned by NNPC (49%), Shell Gas (25.6%), TotalEnergies (15%) and Eni (10.4%) and is a large supplier of LNG to international markets from its six operational trains at Bonny Island. State-owned NNPC is the largest oil producer and supplier in Africa and has operations across the oil and gas, power and renewables sectors.

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