Nigeria LNG Ltd (NLNG) has finalized a series of 20-year gas supply contracts with major producers, ensuring feedstock security for its existing trains and the ongoing $10 billion Train-7 expansion. Reports from Reuters indicate that the agreements involve NNPC Ltd, Shell Nigeria, Oando Group, Aradel Holdings, and First E&P, collectively providing around 1.29 billion standard cubic feet per day of gas.
The supply deals, which include extension options, come at a crucial moment as Train-7 on Bonny Island nears 80% completion. Industry analysts highlighted in Reuters coverage that the long-term framework offers operational certainty for Nigeria’s largest LNG exporter, while also addressing recurrent shortages driven by pipeline vandalism and upstream production constraints.
Philip Mshelbila, NLNG’s Managing Director, underscored that the contracts are part of a wider strategy to diversify supply sources in the wake of international oil majors reducing their onshore exposure. This, he noted, would help shield operations from disruptions and bolster the company’s long-term growth trajectory.
Analysts further suggested that securing reliable gas volumes positions NLNG to strengthen Nigeria’s export commitments and domestic supply, while improving investor confidence in the country’s energy transition and industrial development agenda.
