Lagos, Nigeria – NNPC Gas Marketing Limited (NGML), part of the Nigerian National Petroleum Company (NNPC) Limited, has signed a major gas supply deal with Dangote Petroleum Refinery and Petrochemicals FZE. The agreement was signed by Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President and CEO of Dangote Group, at Dangote’s office in Falomo, Lagos, on Tuesday.
According to the deal, NGML will supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos. The gas will be used to generate power and as feedstock for refinery operations. This arrangement aims to boost local production and support Nigeria’s industrial growth.
The agreement fits with President Bola Ahmed Tinubu’s plans to use Nigeria’s gas resources to improve the economy. This partnership is unique because NGML will make a significant investment without any capital costs, setting a new example for other gas distributors in the country.
Under the deal, NGML will provide 50MMSCF/D of gas as a firm supply and another 50MMSCF/D as an interruptible supply, meaning it can be adjusted based on need. The agreement will last for 10 years, with options for renewal and potential expansion.
This partnership is expected to help the Dangote Refinery run smoothly, boost the use of natural gas in Nigeria, and strengthen the country’s industrial capabilities.
NNPC, through NGML, is focused on making more use of domestic gas to support businesses and industries across Nigeria. This new agreement with Dangote Refinery highlights their shared goal of increasing local production and providing important products for Nigerians.
The deal also shows NGML’s commitment to business growth and NNPC’s goal of ensuring energy security in Nigeria through key gas projects.
Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, announced this development on November 13, 2024.
