From Victor Osula, Abuja
The Nigerian National Petroleum Company Limited, through its subsidiary NNPC Gas Marketing Limited, has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals FZE.
This deal is expected to supply natural gas to the Dangote Refinery, enhancing Nigeria’s domestic production capacity and supporting industrial growth.
The agreement was signed on Tuesday by the Managing Director of NGML, Barr. Justin Ezeala, and the President/CEO of the Dangote Group, Aliko Dangote, at Dangote’s Corporate Head Office in Lagos, according to a statement by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye.
Under the terms of this 10-year contract, NGML will provide 100 million standard cubic feet per day of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos.
This supply includes 50 MMSCF/D as firm supply and an additional 50 MMSCF/D as interruptible natural gas, with provisions for renewal and potential capacity growth.
The statement read, “This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing 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 cubic feet per day (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.”
The statement added that the collaboration aims to support the operational success of the Dangote Refinery, as well as boost Nigeria’s domestic gas utilization, a key pillar in NNPC’s strategy to support industries and bolster energy security nationwide.
NNPC highlighted that this partnership demonstrates NGML’s ongoing commitment to excellence, reinforcing NNPC Ltd’s mandate to secure Nigeria’s energy future by advancing critical gas projects across the country.
