• Nigeria LNG (NLNG) signed 20-year agreements with local firms.
• The deals secure 1.29 billion standard cubic feet of gas daily.
• This partnership aims to restore revenues and drive economic growth.

Nigeria LNG (NLNG), a cornerstone of the Nigerian economy, has taken a decisive step to ensure its operational stability and enhance the nation's energy diversification. The company, crucial for limiting gas flaring and generating vital foreign currency through liquefied natural gas (LNG) exports, faces significant challenges in securing raw gas for its liquefaction processes.

NLNG, which contributes an estimated 10-12% of Nigeria's export revenues, finalized several critical agreements on Saturday, August 23. These contracts secure the supply of 1.29 billion standard cubic feet of gas per day.

The 20-year agreements include options for extension. NLNG partnered with key local players, including Oando Group, Aradel Holdings, and First Exploration & Petroleum Development Company (First E&P), to forge these deals.

Disruptions in raw gas supply severely impacted NNPC's revenues in 2023. Official figures reveal a 23% drop, from $7.59 billion to $5.84 billion. The Nigerian state, holding a 49% stake in NLNG via NNPC Ltd, alongside Shell (25.6%), TotalEnergies (15%), and Eni (10.4%), consequently faced an estimated revenue loss of approximately $860 million, based on its shareholding.

These supply constraints previously forced reduced operations at several of Bonny Island's six liquefaction trains, which possess an installed capacity of 22 million tonnes per year. The situation escalated in February 2025, when pipeline sabotage caused a 40% reduction in LNG exports.

Although workers restored pipeline supply to the plant, and five trains resumed service in March, "an impact on NLNG's gas supply and delivery times" persisted, stated Sophia Horsfall, NLNG's managing director for external relations and sustainable development.

Beyond securing export capabilities, these new agreements inject tangible momentum into Nigeria's "Decade of Gas" strategy. Launched in 2021, this initiative aims to position gas as a primary engine for the nation's economic growth. Despite previous presidential decrees supporting the sector, concrete results remained elusive until now.

With Train 7 now 80% complete and its commissioning scheduled for 2027, NLNG's total capacity will expand significantly. The company projects an increase from 22 to 30 million tonnes per year.

This article was initially published in French by Abdel-Latif Boureima

Edited in English by Ange Jason Quenum