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NNPCL, Ssonic Petroleum Sign 20-year Gas Supply Deal

March 7, 2025
in News
NNPCL, Ssonic Petroleum Sign 20-year Gas Supply Deal
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The Nigerian National Petroleum Company Limited has taken a step to boost domestic gas utilisation, signing a 20-year Gas Sale and Purchase Agreement with Ssonic Petroleum Limited.

The agreement, executed on March 6, 2025, will see NNPCL’s subsidiary, NNPC Gas Marketing Ltd, and its partner, NIPCO Gas Ltd, supply 80 million standard cubic feet per day of natural gas to Ssonic Petroleum’s proposed Liquefied Natural Gas plant in Lekki Free Trade Zone, Lagos State.

The NNPCL spokesperson, Olufemi Soneye, in a statement on Friday, said that the gas supply agreement is part of efforts by the firm to boost domestic gas utilisation for the nation’s industrial and economic growth.

The statement read, “Under the terms of the agreement, which was executed on Thursday, 6th March 2025, the NGML-NIPCO UJV will supply 80million standard cubic feet (mmscf) per day of natural gas to the Ssonic Petroleum LNG plant for a period of 20 years.

The gas supply agreement is part of efforts by the NNPC Ltd to boost domestic gas utilisation for the nation’s industrial and economic growth and promote the use of gas as a cleaner, cheaper and more environmentally friendly fuel in keeping with the goal of reducing global warming.”

The Group Chief Executive Officer of the NNPCL, Mr Mele Kyari, reiterated the role of natural gas in fuelling economic growth and industrial development in Nigeria.

The GCEO highlighted the global acceptance of gas as a crucial energy source that sustains economic growth and drives industrial activities.

Kyari underscored the significance of prioritising natural gas production and supply, particularly in the context of geopolitical dynamics and energy security in the global economy.

Last year, the company signed a deal with the Dangote Petroleum Refinery to supply 100 million standard cubic feet of gas per day – 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.

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