NNPC, Dangote Refinery Sign 10-year Gas Supply Deal To Increase Production
As part of determined efforts to upgrade the production of 650,000 barrels per day, the Nigeria Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC Ltd), has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Refinery.
The agreement which was signed by the Managing Director, NGML, Mr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, situated at Ibeju-Lekki, Lagos State.
The 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 kick starting its economic prosperity.
The development of the huge investment is penned with zero capital expenditure (CAPEX) outlay, thus described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in Nigeria.
Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (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.
The agreement is a significant step towards ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
The NNPC Ltd, through NGML, its gas marketing subsidiary, has continued to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The development also represents a milestone for both the NNPC Ltd and Dangote Refinery, thereby aligning with their shared commitment to boosting local production and providing vital products for the benefit of Nigerians.
It is also a 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.
