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NNPC, Dangote, partners ink gas supply deal to boost LNG utilisation

Alhaji Aliko Dangote, Chairman of Dangote Group; and Malam Mele Kyari, Group Managing Director/CEO of NNPC Limited Photo: NAN

*Mele Kyari, Group Managing Director and Chief Executive Officer of NNPC Limited says the gas supply deal is part of the company’s drive to ensure greater utilisation of gas in the Nigerian economy

Gbenga Kayode | ConsumerConnect

The Nigerian National Petroleum Company (NNPC) Limited has sealed a deal with partners on gas aggregation to increase local production of fertiliser in the country.

The partner signed the Gas Aggregation Agreement Wednesday, March 2, 2022, on the sideline of the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition”, in Abuja, FCT.

The partners for the phase two fertiliser plant include Dangote Fertiliser Limited, Shell Petroleum Development Company (SPDC), ENI, Gas Aggregation Company of Nigeria (GACN), Nigeria Agip Oil Company and TotalEnergies, report stated.

Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO) of NNPC Limited, at the agreement signing said the deal was part of its drive to ensure greater utilisation of gas in the country, by way of conversion or monetisation in the form of Liquefied Natural Gas.

Kyari also noted that NNPC has progressed its engagement with the Dangote Group for the SPDC joint venture, which comprises NNPC, Shell, ENI and TotalEnergies to deliver 70 million cubic of gas to phase two Dangote plant.

According to the NNPC GMD/CEO, this would no doubt increase gas in the domestic market in Nigeria.

He furether said: “But more importantly, it is a platform that will increase local production of fertiliser in our country.

“As you may be aware, it is government’s drive to ensure that we become self sufficient in the production of fertiliser in the country, and specifically for this year’s zero import of fertilisation in the country.

“Currently, Dangote group provides about 65 percent of all domestic production of fertiliser. And we are happy to sign the Gas Supply Agreement with them.”

Mr. Osagie Okunbor, Chairman of Shell Company, commended the joint team that has worked extremely hard to sign the gas sale aggregation agreement.

Okunbor said: “It is huge important to this country because already Dangote produces the bulk of fertiliser and we know how important the subject of agriculture is and for not just energy security, but also food security.

“This is why all of us on the SPDC JV led by the NNPC but also with my colleagues in TotalEnergies really pleased to be able to execute this agreement.”

Speaking on the occasion, Alhaji Aliko Dangote, Chairman of Dangote Group, also thanked Malam Kyari for his effort at actualising the signing of the agreement.

Dangote said the additional gas would bring in more foreign exchange into the country in view of the energy crisis.

Besides Egypt, the Chairman of Dangote Group noted no other African country has the capacity, and the gas deal would meet with domestic market and export at least 1.8 billion dollars in terms of foreign exchange coming into Nigeria.

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