NNPCL seals 10-year gas supply deal with Dangote Refinery

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The Nigerian National Petroleum Company (NNPC) Limited has announced that its subsidiary, NNPC Gas Marketing Limited (NGML), has successfully signed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

This was revealed in a statement issued by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday.

The agreement, signed by the Managing Director of NGML, Barr. Justin Ezeala, and the President/CEO of Dangote Group, Aliko Dangote, on Tuesday at Dangote’s Corporate Head Office in Falomo, Lagos, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery in Ibeju-Lekki, Lagos State.

Soneye highlighted that this achievement aligns with President Bola Ahmed Tinubu’s policy of leveraging Nigeria’s abundant gas resources to boost industrial growth and drive economic prosperity.

He also emphasized that the development, involving such a significant investment with zero capital expenditure (CAPEX), is seen as a groundbreaking event in the history of NGML and any gas Local Distribution Company (LDC) in Nigeria.

As part of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), with 50MMSCF/D being firm supply and the remaining 50MMSCF/D as interruptible natural gas supply to the refinery for an initial 10-year period, with options for renewal and expansion.

NNPCL noted that this collaboration marks a significant step toward the operational success of the Dangote Refinery and advancing Nigeria’s domestic gas utilization.

“The agreement represents 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.

“It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd.’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country,”the statement added.