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NNPC Ltd. signs 10-year deal to supply 100mmscf/d gas to Dangote Refinery

Nathaniel Irobi by Nathaniel Irobi
November 14, 2024
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NNPC Ltd. signs 10-year deal to supply 100mmscf/d gas to Dangote Refinery
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The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Ltd. (NNPC Ltd.), has executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

Under the agreement, the NNPC Gas Marketing Limited will supply 100 Cubic Feet Per Day (MMSCF/D) gas to Dangote Refinery for an initial period of 10 years to boost local production and revamp industrial growth.

The agreement was signed by the Managing Director, NGML, Mr Justin Ezeala and the President/CEO, Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State.

Chief Corporate Communications Officer, NNPC Ltd. Mr Olufemi Soneye, in a statement said the agreement outlined the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.

Soneye said the milestone was in line with President Bola Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

“This development, which sees a huge investment of this nature penned with zero Capital Expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.

“Under the terms of the agreement, NGML will supply 100 million standard MMSCF/D; 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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“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.

“NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide,” he said.

He said the agreement represented a milestone for both NNPC Ltd. and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.

According to him, it is a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring energy security through the execution of strategic gas projects across the country. (NAN)

Tags: Dangote refinery
Nathaniel Irobi

Nathaniel Irobi

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