NNPC Ltd Expands Domestic Gas Supply with Landmark Agreement for 80mmscf/d Supply to Ssonic Petroleum
In a significant move to bolster domestic gas utilization and support Nigeria’s industrial and economic growth, the Nigerian National Petroleum Company Limited (NNPC Ltd) has signed a landmark Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd. The agreement, executed on Thursday, March 6, 2025, will see NNPC Gas Marketing Ltd (NGML), a subsidiary of NNPC Ltd, and its Unincorporated Joint Venture (UJV) partner, NIPCO Gas Ltd, supply 80 million standard cubic feet (mmscf) of natural gas daily to Ssonic Petroleum’s proposed Liquefied Natural Gas (LNG) plant in the Lekki Free Trade Zone, Lagos State.
The 20-year agreement is a strategic step by NNPC Ltd to enhance domestic gas utilization, aligning with the federal government’s agenda to promote gas as a cleaner, more affordable, and environmentally friendly energy source. This initiative also supports global efforts to reduce carbon emissions and combat climate change.
The GSPA underscores NNPC Ltd’s commitment to expanding Nigeria’s gas infrastructure and ensuring a steady supply of natural gas to industries, thereby driving economic development. The Lekki Free Trade Zone, a hub for industrial and commercial activities, is poised to benefit significantly from this agreement, as the LNG plant will provide a reliable energy source for businesses operating in the zone.
Speaking on the agreement, a representative of NNPC Ltd emphasized the importance of gas as a catalyst for industrial growth and economic diversification. “This partnership with Ssonic Petroleum is a testament to our dedication to increasing domestic gas utilization and supporting Nigeria’s transition to cleaner energy sources. It also reflects our broader strategy to leverage Nigeria’s vast gas resources for sustainable development,” the representative stated.
The agreement is expected to create numerous economic opportunities, including job creation, increased investment in gas infrastructure, and enhanced energy security. It also aligns with the federal government’s Decade of Gas initiative, which aims to position Nigeria as a leading gas-powered economy.
The NNPC Ltd continues to play a pivotal role in driving Nigeria’s energy transition, and this latest agreement with Ssonic Petroleum marks another milestone in its efforts to harness the nation’s gas potential for industrial growth and environmental sustainability.
