igeria LNG Limited is set to receive a major boost in gas supply as Seplat Energy has entered into a new preliminary agreement to supply over 150,000 tons of gas monthly to the liquefied natural gas giant. This supply increase, expected to begin in the third quarter of 2025, represents more than a 12 per cent rise in Nigeria LNG’s monthly gas intake compared to its average from the previous year.
The development was revealed by Effiong Okon, head of the Seplat subsidiary operating the gas project that will feed the NLNG plant. He told Bloomberg on Tuesday that the agreement marks a critical step forward for both companies, especially as the Nigerian gas industry continues to face serious setbacks due to pipeline vandalism and fuel theft.
NLNG has suffered significant production losses in recent years due to supply disruptions caused by these security threats. The new deal is only the second time in NLNG’s history that it is sourcing gas from a third-party supplier, underlining the importance of this partnership in addressing the plant’s ongoing supply gaps.
Seplat Energy, which recently increased its gas output by 50 per cent after acquiring assets from ExxonMobil’s Nigerian unit, now finds a productive channel for its output through this agreement. Its $700 million Assa North-Ohaji South (ANOH) gas plant, though completed, has remained idle due to delays in the east-west pipeline meant to transport gas from the facility.
Okon said both companies are still finalising the technical and commercial elements of the agreement, but they are optimistic that operations will begin before the end of the third quarter. He also clarified that this arrangement is a short-term solution pending the completion of the delayed pipeline infrastructure, suggesting that the deal with NLNG is intended to fill the gap temporarily.
Energy analyst Katlong Alex of the African Energy Council described the deal as a “strategic convergence of need and opportunity.” He explained that Seplat now has a way to utilise its excess gas production, while NLNG benefits from a more stable supply amid supply chain vulnerabilities.
NLNG has not yet issued an official comment on the development as of the time of this report.
This agreement between Seplat and NLNG comes at a critical time for Nigeria’s energy sector, which has struggled with operational challenges despite the country’s rich gas reserves. Pipeline vandalism, crude oil theft, and underinvestment in infrastructure continue to affect production levels and limit the growth of both upstream and midstream players.
Industry watchers believe that this partnership may encourage more flexible gas supply agreements in the future, especially as more local energy firms expand their gas production capabilities and seek new ways to commercialise output. The deal also signals a growing trend where indigenous companies like Seplat play more significant roles in stabilising energy supply in Nigeria.
