The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Ltd. (NNPC Ltd.), has entered into a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE. This agreement will see NGML supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to Dangote Refinery for an initial period of 10 years.
The agreement was signed on Tuesday at the Dangote Group’s corporate headquarters in Falomo, Lagos State, by the managing director of NGML, Mr. Justin Ezeala, and the president and CEO of Dangote Group, Aliko Dangote.
According to a statement issued by Mr. Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., the agreement outlined the supply of natural gas for power generation and as feedstock for operations at the Dangote Refinery in Ibeju-Lekki, Lagos State.
Soneye emphasised that this development aligns with President Bola Tinubu’s policy of utilising Nigeria’s abundant natural gas resources to stimulate industrial growth and drive economic prosperity within the country. “This development, which involves significant investment with zero capital expenditure (CAPEX) outlay, has been described as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country,” Soneye added.
The terms of the deal stipulate that NGML will supply 100 MMSCF/D of natural gas to Dangote Refinery, with 50 MMSCF/D allocated as firm supply and the remaining 50 MMSCF/D as interruptible natural gas supply. This agreement is set for an initial 10-year period, with options for renewal and expansion, underscoring the long-term commitment between NGML and Dangote Refinery.
This agreement is viewed as a critical step toward ensuring the operational success of Dangote Refinery, the largest single-train refinery in the world, and enhancing the use of domestic gas resources in Nigeria. The deal reflects NNPC Ltd.’s strategy of boosting the nation’s industrial base and contributing to energy security by promoting the use of natural gas in powering industries across the country.
Soneye further noted that this collaboration is a significant milestone for both NNPC Ltd. and Dangote Refinery, highlighting the shared commitment between the two organisations to boost local production and supply vital products that will benefit the Nigerian economy.
Aliko Dangote, in his remarks, highlighted the importance of the gas supply agreement in powering Dangote Refinery’s operations, stating that it would contribute significantly to the refinery’s smooth operation and its capacity to meet the domestic and international demand for refined petroleum products.
