The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has signed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals.
Under the agreement, the NNPC Gas Marketing Limited will supply 100 Cubic Feet Per Day (MMSCF/D) gas to the Dangote refinery for an initial period of 10 years to boost local production and revamp industrial growth.
The agreement was signed by the Managing Director of NGML, Justin Ezeala, and the President/CEO of Dangote Group, Aliko Dangote, in Lagos on Tuesday, November 12, 2024.
The NNPCL spokesperson, Olufemi Soneye, in a statement on Wednesday, November 13, said the agreement outlined the supply of natural gas for power generation and feedstock at the Dangote refinery in Ibeju-Lekki area of Lagos State.
Soneye said the milestone 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.
Soneye said the milestone was in line with President Bola Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and commencing its economic prosperity.
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He 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.
“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.”
The NNPCL spokesman noted that the agreement represented a milestone for the company and the Dangote refinery, saying it aligned with their shared commitment to boosting local production and providing vital products for the benefit of Nigerians.
“It is also 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,” Soneye added.
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