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NNPCL Signs 10-Year Gas Supply Deal With Dangote Refinery

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1 month ago

Nov 14, 2024.

The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPC Limited, has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals, Lagos, to supply natural gas for power generation and as feedstock for the refinery.

The agreement was executed by NGML’s Managing Director, Justin Ezeala, and Dangote Group’s President and CEO, Aliko Dangote, at Dangote’s Corporate Head Office in Falomo, Lagos, on Tuesday.

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EKO HOT BLOG reports that according to the NNPCL spokesperson, Olufemi Soneye, the partnership aligns with President Bola Tinubu’s strategy to harness Nigeria’s abundant gas resources to stimulate industrial growth and drive economic prosperity.

“This significant agreement has been described as unprecedented in NGML’s history or for any gas Local Distribution Company in Nigeria, achieving a substantial milestone with zero capital expenditure,” Soneye stated in a press release on Wednesday.

The terms specify that NGML will supply 100 million standard cubic feet of gas daily, divided into 50 MMSCF per day as firm supply and another 50 MMSCF per day as interruptible supply, for an initial period of 10 years, with options for renewal and expansion.

NNPC Ltd emphasized that this collaboration supports the operational success of the Dangote Refinery and advances domestic gas utilization across Nigeria.

Through NGML, NNPC continues its commitment to promoting the use of domestic gas to fuel industries and businesses, strengthening local production, and providing essential products to benefit Nigerians.

NNPCL Gas Supply Dangote

“This agreement marks a milestone for both NNPC Ltd and the Dangote Refinery, reflecting a shared dedication to energy security and business excellence,” Soneye added, highlighting NGML’s efforts to fulfill NNPC Ltd’s core mandate of ensuring Nigeria’s energy security via strategic gas projects nationwide.

Notably, the Dangote Refinery is equipped with a 435MW power plant capable of meeting the entire power demand of the Ibadan Electricity Distribution Company.

This development further cements NGML’s role in advancing energy solutions that secure Nigeria’s industrial and economic future.