The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) subsidiary NNPC Gas Marketing Limited (NGML) and Dangote Petroleum Refinery and Petrochemicals FZE have signed a Gas Sale and Purchase Agreement (GSPA).
In order to increase domestic output and revitalise industrial growth, the NNPC Gas Marketing Limited would provide 100 cubic feet per day (MMSCF/D) of gas to the Dangote Refinery for a ten-year initial period.
The agreement was signed by the Managing Director, NGML, Mr Justin Ezeala and the President/CEO, Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State.
Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. in a statement said the agreement outlined the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, 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.
“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 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 said.
He said 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 claims that it is more evidence of NGML’s steadfast dedication to business excellence and the accomplishment of NNPC Ltd’s primary goal of guaranteeing energy security by carrying out critical gas projects around the nation.
