NNPC Ltd set to supply 100mmscf/d gas to Dangote refinery

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 Refinery and Petrochemicals FZE, on Tuesday, in Abuja

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 Refinery and Petrochemicals FZE.

The spokesman of NNPC Limited, Mr. Olufemi Soneye, made this known on Wednesday.

He said 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 Office of Dangote in Falomo, Lagos State, outlined the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.

He said the milestone was 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 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 utilization,” Soneye said.

According to him, NNPC Ltd, through NGML, its gas marketing subsidiary, had continued to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.

He said the agreement represented 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 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,” he stated.