The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPCL, has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals, Lagos.
The agreement was signed on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos, by Justin Ezeala, the Managing Director of NGML, and Aliko Dangote, the President/Chief Executive Officer of the Dangote Group. It outlines the supply of natural gas for power generation and feedstock at the refinery.
“This major milestone is 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 outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company in the country,” stated Olufemi Soneye, NNPCL spokesperson, on Wednesday.
According to Soneye, under the terms of the agreement, NGML will supply 100 million standard cubic feet of gas per day—50MMSCF/D as firm supply and the remaining 50MMSCF/D as interruptible natural gas supply to the refinery. This agreement will last for an initial period of 10 years, with options for renewal and expansion.
“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.”
“The agreement represents 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.”
“It is also further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country,” the statement concluded.
Reports indicate that the Dangote refinery alone is equipped with a 435MW power plant capable of meeting the total power needs of the Ibadan Electricity Distribution Company.
