Management of Gas Supply Contracts and Domestic Obligations in the Nigerian Midstream Sector

The management of gas supply contracts within Nigeria's midstream sector has profound implications for investment certainty, supply reliability, and the realisation of the government's domestic gas utilisation objectives. This study examines the contractual frameworks governing gas supply in the Nigerian midstream sector, focusing on the management of Gas Transportation Agreements (GTAs), Gas Sales Agreements (GSAs), and Domestic Gas Supply Obligations (DGSOs) by midstream operators. The research employs a professional practice analysis methodology, reviewing publicly available contract frameworks, interviewing gas supply contract managers and legal professionals, and analysing documented instances of contract non-performance and dispute resolution. The study investigates the contractual mechanisms for managing off-specification gas deliveries, force majeure events, take-or-pay obligations, and pipeline access terms under the Petroleum Industry Act (PIA) 2021. Findings reveal persistent tensions between producers' preference for export-linked pricing and the government's domestic gas pricing regime, contributing to a structural under-supply of gas to the domestic power sector. The study further evaluates the performance of existing contract dispute resolution mechanisms and their adequacy in providing timely commercial certainty for midstream investors. Recommendations include development of standardised gas contract templates aligned with PIA provisions, establishment of an independent gas contract dispute resolution panel, and transparent publication of DGSO compliance performance data. Keywords: gas contracts, DGSO, midstream sector, PIA 2021, supply management.