NNPC Gas Marketing Limited (NGML) has finalized a significant gas supply deal with Dangote Petroleum Refinery and Petrochemicals FZE. The agreement was signed on Tuesday by Justin Ezeala, the managing director of NGML, and Aliko Dangote, president and CEO of the Dangote Group, at Dangote’s corporate headquarters in Lagos.
The gas sale and purchase agreement (GSPA) outlines the provision of natural gas for power generation and as feedstock for the refinery.
Under this arrangement, NGML, a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, will supply approximately 100 million standard cubic feet per day (mmscf/d) of gas for an initial period of 10 years.
In a statement released on Wednesday, chief corporate communications officer at NNPC Olufemi Soneye, emphasized that this milestone aligns with President Bola Tinubu’s vision of leveraging Nigeria’s abundant gas resources to revitalize the nation’s industrial growth and stimulate economic prosperity.
“This development represents an unprecedented investment with zero capital expenditure (CAPEX) outlay in the history of NGML and any gas Local Distribution Company (LDC) in the country,” the statement noted.
According to the agreement, NGML will provide 100 mmscf/d, with 50 mmscf/d classified as firm supply and the remaining 50 mmscf/d as interruptible natural gas supply, with options for renewal and growth.
This collaboration marks a crucial step in ensuring the operational success of the Dangote Refinery while enhancing domestic gas utilization in Nigeria. Soneye stated that the agreement underscores both companies’ commitment to boosting local production and delivering essential products for the benefit of all Nigerians.
The deal further demonstrates NGML’s dedication to business excellence and NNPC Ltd’s mission of ensuring Nigeria’s energy security through strategic gas projects across the nation.
