NNPC Subsidiary Signs Gas Supply Agreement With Dangote Refinery

The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has formalized a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos.

The agreement, signed on Tuesday at the Dangote Group’s Corporate Head Office in Falomo, Lagos, aims to secure a steady supply of natural gas to the Dangote Refinery, which will be used for power generation and as feedstock.

The deal was signed by NGML’s Managing Director, Justin Ezeala, and Aliko Dangote, President and CEO of the Dangote Group.

“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,” a statement by the NNPCL spokesperson, Olufemi Soneye, said 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 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.

“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 submitted.