NNPCL, Dangote Petroleum Refinery ink 10-year deal for gas supply to boost local production, industrialisation

*The NNPC Gas Marketing Limited, a subsidiary of the Nigerian National Petroleum Company Limited discloses the state oil firm has successfully executed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals FZE towards utilising revamping the country’ industrial growth and kickstarting its economic prosperity

Gbenga Kayode | ConsumerConnect

The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has disclosed the company successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE, in Lagos.

The NNPC Limited said Barr. Justin Ezeala, Managing Director of NGML, and Alhaji Aliko Dangote, President/Chief Executive (CE) of the Dangote Group, inked the agreement, Tuesday, November 12, 2024, at the Corporate Head Office of Dangote, at Falomo, Lagos State.

Mr. Olufemi O. Soneye, Chief Corporate Communications Officer at NNPCL, in a statement Tuesday, also said the deal between NGML and Dangote’s outlined the supply of natural gas for power generation and feedstock at the Dangote Petroleum Refinery, in Ibeju-Lekki, Lagos State.

The NNPC Limited stressed the latest major milestone is in line with President Bola Ahmed Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

Soneye also stated: “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 NNPCL further said: “This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.

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

According to NNPC Limited, the agreement represents a milestone for both the Company and Dangote Petroleum Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerian energy consumers.

“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,” stated the Chief Corporate Communications Officer at NNPCL.