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NNPC signs 10-year deal to supply 100mscf of gas/day to Dangote refinery

Dangote Refinery exports petrol to Cameroon

The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has executed a Gas Sale and Purchase Agreement (GSPA) aimed at supplying 100 million square cubic feet of gas per day to Dangote Petroleum Refinery and Petrochemicals FZE.

Olufemi Soneye, Chief Corporate Communications Officer, NNPC, made this known in a statement obtained by BusinessDay late Wednesday.

According to him, the agreement was signed by Justin Ezeala, managing director, NGML, and Aliko Dangote, President/CEO of the Dangote Group, on Tuesday, at the Corporate Head Office of Dangote in Falomo, Lagos State.

Soneye stated that the GSPA outlined the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.

He further stated that the agreement was in line with President Bola Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

He said, “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.

“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.

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

Soneye also disclosed that the agreement represented 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.

He emphasised that the deal further proved 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.

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