In a significant move to enhance domestic gas utilization and support Nigeria’s industrial and economic growth, the Nigerian National Petroleum Company Limited (NNPC Ltd) has entered into a 20-year Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Limited. The agreement, signed on March 6, 2025, will see NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC Ltd, in partnership with NIPCO Gas Limited, supply 80 million standard cubic feet per day (mmscf/d) of natural gas to Ssonic Petroleum’s proposed Liquefied Natural Gas (LNG) plant located in the Lekki Free Trade Zone, Lagos State.
The agreement underscores NNPC Ltd’s commitment to expanding domestic gas utilization, promoting the use of natural gas as a cleaner, more affordable, and environmentally friendly energy source, and aligning with global efforts to reduce carbon emissions and combat climate change.
In a statement released on Friday, NNPC Ltd’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized the strategic importance of the agreement. He stated, “Under the terms of the agreement, the NGML-NIPCO joint venture will supply 80 million standard cubic feet of natural gas daily to Ssonic Petroleum’s LNG plant for a period of 20 years. This initiative is part of NNPC Ltd’s broader efforts to drive industrial and economic growth by increasing domestic gas utilization and advancing the use of gas as a sustainable energy source.”
The Group Chief Executive Officer of NNPC Ltd, Mr. Mele Kyari, highlighted the critical role of natural gas in fueling economic development and industrial activities. He noted that natural gas is globally recognized as a vital energy source that supports economic growth and energy security, particularly in the context of evolving geopolitical dynamics and the global energy transition.
Kyari reiterated NNPC Ltd’s focus on prioritizing natural gas production and supply to meet domestic demand and strengthen Nigeria’s position in the global energy market. “Natural gas is not only a catalyst for economic growth but also a key driver of industrial development. By prioritizing gas utilization, we are not only supporting Nigeria’s energy needs but also contributing to global efforts to reduce greenhouse gas emissions,” he said.
This agreement follows NNPC Ltd’s recent partnership with the Dangote Petroleum Refinery, signed last year, to supply 100 million standard cubic feet of gas per day (50 mmscf/d firm supply and 50 mmscf/d interruptible supply) for an initial period of 10 years, with provisions for renewal and expansion. These initiatives reflect NNPC Ltd’s strategic focus on leveraging Nigeria’s abundant gas resources to drive industrialization, economic diversification, and sustainable development.
The collaboration with Ssonic Petroleum is expected to further stimulate economic activities in the Lekki Free Trade Zone, attract investments, and create job opportunities, while also reinforcing Nigeria’s commitment to transitioning to cleaner energy sources in line with global environmental goals.