NNPC In 10-Year Gas Supply Deal with Dangote Refinery
NNPC Gas Marketing Limited (NGML), a subsidiary of Nigerian National Petroleum Company Ltd. (NNPC Ltd.), has signed a landmark Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE. The agreement will see NGML supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos, for a decade, facilitating industrial growth and supporting local production.
The GSPA, signed at Dangote’s Corporate Headquarters in Lagos, will provide natural gas for power generation and as feedstock, driving the refinery’s operations. Mr Olufemi Soneye, Chief Corporate Communications Officer for NNPC Ltd., stated, “This collaboration marks a significant milestone toward the operational success of the Dangote Refinery and reinforces Nigeria’s domestic gas utilisation goals.”
Under the deal, NGML will deliver 50 MMSCF/D on a firm basis and an additional 50 MMSCF/D on an interruptible basis, with renewal and expansion options. This arrangement aligns with President Bola Tinubu’s focus on harnessing Nigeria’s gas resources to boost industrial growth and economic progress.
Mr Justin Ezeala, Managing Director of NGML, signed on behalf of NNPC, while Aliko Dangote, President/CEO of Dangote Group, represented the refinery. Soneye remarked, “NNPC Ltd., through NGML, remains committed to driving domestic gas use, supporting industries nationwide, and ensuring energy security by executing strategic gas projects across Nigeria.”
This milestone showcases NNPC Ltd.’s and Dangote Refinery’s dedication to fostering local production and delivering essential energy resources to benefit Nigerians. Nigeria Secures $134m AfDB Loan to Boost Grain Production
