The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has successfully entered into a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement was formalized on Tuesday at the Dangote Group’s corporate headquarters in Lagos, with Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President/CEO of Dangote Group, signing the deal. This was confirmed in a statement issued by NNPCL’s spokesman, Olufemi Soneye, on Wednesday.
The agreement, which focuses on the supply of natural gas for power generation and feedstock to the Dangote Refinery in Ibeju-Lekki, Lagos State, marks a significant step in advancing President Bola Tinubu’s vision of leveraging Nigeria’s abundant gas resources to boost industrial growth and economic prosperity.
Notably, this agreement is being hailed as an unprecedented development, with zero capital expenditure (CAPEX) required, marking a historic milestone for both NGML and the gas Local Distribution Company (LDC) sector in Nigeria. Under the terms of the deal, NGML will supply 100 million standard cubic feet per day (MMSCF/D) of natural gas, with 50 MMSCF/D provided as firm supply and the remaining 50 MMSCF/D as interruptible supply. This supply arrangement will last for an initial period of 10 years, with options for renewal and expansion.
This partnership represents a crucial step toward ensuring the operational success of the Dangote Refinery, while also enhancing Nigeria’s domestic gas utilization. NNPC Ltd, through NGML, continues to play a leading role in promoting the use of domestic gas to support industries and businesses across the country.
The agreement underscores the shared commitment of NNPC Ltd and Dangote Refinery to boosting local production, ensuring energy security, and providing essential products that benefit all Nigerians. It further demonstrates NGML’s dedication to business excellence and its role in advancing NNPC Ltd’s mandate of ensuring Nigeria’s energy security through strategic gas projects.
