Kehinde Fajobi
The Nigerian National Petroleum Company Limited (NNPCL), through its subsidiary NNPC Gas Marketing Limited (NGML), has signed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The deal, formalised on Wednesday at Dangote’s Corporate Head Office in Falomo, Lagos, will ensure the supply of natural gas for power generation and feedstock at the Dangote Refinery in Ibeju-Lekki, Lagos State.
NGML’s Managing Director, Barrister Justin Ezeala, and Dangote Group’s President and CEO, Aliko Dangote, signed the agreement.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye hailed the agreement as a major milestone supporting President Bola Ahmed Tinubu’s strategy to leverage Nigeria’s gas resources for economic growth and industrial revitalisation.
According to Soneye, this deal represents an unprecedented achievement, with no capital expenditure (CAPEX) outlay from NGML or any local gas distributor.
Under the agreement’s terms, NGML will supply 100 million standard cubic feet of natural gas per day (MMSCF/D) to the Dangote Refinery, split into 50 MMSCF/D firm supply and 50 MMSCF/D as interruptible supply, for an initial period of 10 years with options for extension.
NNPCL noted that this partnership reflects its ongoing efforts to promote domestic gas utilisation across Nigeria, ensuring energy security and boosting local industrial production.
The agreement further solidifies NGML’s dedication to excellence in executing strategic gas projects that advance Nigeria’s economic and energy security.