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NNPC Ltd Sets to Supply Gas to Dangote Refinery, 10-year Deal to Boost Local Production, Revamp Industrial Growth

The agreement represents a milestone for both NNPC Ltd and Dangote Renery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.

Newsroom Nigeria by Newsroom Nigeria
November 13, 2024
in Across the Nation
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The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Renery and Petrochemicals FZE.

The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Ofce of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Renery, in Ibeju-Lekki, Lagos State.

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This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing 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 cubic feet per day (MMSCF/D), 50MMSCF/D being ram supply and the rest 50MMSCF/D interruptible natural gas supply to the renery 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 Renery and enhancing Nigeria’s domestic gas utilization. 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 Renery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.

It is also a further proof of NGML’s unwavering commitment to business excellence and fullling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country

 

Photo Caption: L-R: Managing Director, Nigeria Gas Marketing Limited (NGML), Barr. Justin Ezeala and President/CEO of the Dangote Group, Aliko Dangote display a signed Gas Sale and Purchase Agreement (GSPA) for the supply of natural gas to the Dangote Petroleum Renery and Petrochemicals FZE, on Tuesday, in Abuja.

Photo Caption: L-R: Managing Director, Nigeria Gas Marketing Limited (NGML), Barr. Justin Ezeala and President/CEO of the Dangote Group, Aliko Dangote display a signed Gas Sale and Purchase Agreement (GSPA) for the supply of natural gas to the Dangote Petroleum Renery and Petrochemicals FZE, on Tuesday, in Abuja.
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