By Ijeoma Agbafo
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed six strategic agreements with industry partners to deepen domestic gas utilisation, strengthen energy security and support the Federal Government’s gas-based industrialisation agenda.
The agreements, signed on the sidelines of the 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja, include a Memorandum of Understanding and a Gas Sale and Aggregation Agreement with Ajaokuta Steel Company Ltd., a Gas Sale Agreement with UTM Floating LNG, and three Network Entry Agreements with Chevron Nigeria Ltd., AGPC and NNPC Exploration and Production Ltd.
The Group Chief Executive Officer of NNPC Ltd., Bashir Ojulari, said the agreements would expand domestic gas supply, strengthen the Nigerian Gas Transportation Network Code and position natural gas as a catalyst for economic growth and industrial development.
Under the agreement with Ajaokuta Steel Company, the parties will collaborate to revive the steel complex and expand domestic gas utilisation, while a 20-year Gas Sale and Aggregation Agreement will provide gas to power the facility.
NNPC Ltd. and its Seplat Energy Producing Nigeria Unlimited Joint Venture also signed a 15-year gas supply agreement with UTM Floating LNG Ltd. to provide 200 million standard cubic feet of gas per day in support of the company’s floating liquefied natural gas project.
The agreements are expected to inject up to 800 million standard cubic feet of natural gas per day into the domestic transportation network, improving supplies to power plants and industries. The signing was witnessed by senior government officials, including the Ministers of State for Petroleum Resources (Gas and Oil).
