NNPC Ltd. and Dangote Refinery have signed a landmark 10-year gas supply agreement, marking a major step for Nigeria's energy sector. The deal will supply 100 MMSCF/D of natural gas for the Dangote Refinery in Ibeju-Lekki, aligning with President Tinubu's industrial growth vision and enhancing domestic gas utilization.
The Nigerian National Petroleum Company (NNPCL) has officially announced a significant development in the country's energy sector. The company’s subsidiary, NNPC Gas Marketing Limited (NGML), has successfully entered into a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE. This landmark agreement was signed by NGML’s Managing Director, Barr. Justin Ezeala, and Dangote Group’s President/CEO, Aliko Dangote, on Tuesday, marks a critical step in the expansion of Nigeria’s energy infrastructure.
The agreement, which will supply natural gas for power generation and as feedstock at the Dangote Refinery in Ibeju-Lekki, Lagos, is set for an initial 10-year period. NGML is tasked with providing 100 million standard cubic feet per day (MMSCF/D) of gas, with half of it being a firm supply, while the remaining portion is an interruptible supply. This deal aligns with President Bola Ahmed Tinubu’s vision to harness the country’s vast natural gas resources to stimulate industrial growth and bolster economic prosperity.
NNPCL officials have hailed the agreement as unprecedented, particularly due to its zero capital expenditure outlay, making it a pioneering initiative in Nigeria’s gas distribution sector. The collaboration will significantly enhance the operational success of the Dangote Refinery and accelerate domestic gas utilization, a key factor in the country’s long-term energy strategy.
Furthermore, the deal highlights NNPCL’s commitment to Nigeria’s energy security and its mission to execute strategic gas projects that will have far-reaching benefits for the nation’s economy. This partnership represents a crucial step towards increasing local production and advancing Nigeria's energy self-sufficiency.
