NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Ltd, has formalized a gas sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, which was signed on Tuesday at Dangote’s Corporate Head Office in Falomo, Lagos, represents a pivotal collaboration between NNPC Ltd. and Dangote Group, aiming to enhance Nigeria’s domestic gas utilization and support local production.
The GSPA was signed by Barrister Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President and CEO of the Dangote Group.
Under this 10-year agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos.
The supply will consist of a firm commitment of 50 MMSCF/D, with an additional 50 MMSCF/D provided as an interruptible supply.
This supply arrangement serves as both a power source and critical feedstock for the Dangote Refinery, enabling uninterrupted production and strengthening Nigeria’s capacity to meet domestic energy demands.
President Bola Ahmed Tinubu’s administration has underscored the strategic importance of Nigeria’s natural gas resources as a catalyst for economic prosperity and industrial growth.
This deal aligns closely with these national goals, providing a direct boost to local manufacturing and reducing Nigeria’s dependence on imported refined products.
The agreement highlights the Tinubu administration’s focus on harnessing Nigeria’s vast natural gas reserves to fuel industrial growth and economic revitalization.
The NGML-Dangote deal has been lauded as a milestone for Nigeria’s gas sector, as it is one of the most significant agreements executed without any capital expenditure (CAPEX) outlay.
Industry experts have described it as a first of its kind for any Local Distribution Company (LDC) within Nigeria, positioning NGML at the forefront of business innovation and operational efficiency.
NNPC Ltd., through NGML, has remained steadfast in promoting the use of domestic gas to support industries across Nigeria, with this deal marking a major step in ensuring energy security and advancing local production capabilities.
This agreement not only aligns with NNPC’s core mandate but also underscores NGML’s commitment to business excellence and strategic energy partnerships.
The 10-year collaboration provides opportunities for renewal and capacity expansion, reflecting both parties’ commitment to sustainable energy practices and Nigeria’s industrial advancement.
This partnership is expected to create a lasting impact on Nigeria’s industrial sector, supporting a more self-reliant economy and improved energy utilization for years to come.
The execution of the GSPA by NGML and Dangote Group is a significant achievement in advancing Nigeria’s energy infrastructure, ensuring the success of the Dangote Refinery and fostering broad-based economic growth.
Olufemi Soneye, Chief Corporate Communications Officer at NNPC Ltd., expressed optimism about the future of Nigeria’s energy sector, stating that this partnership is a key element in achieving energy security and strengthening the nation’s industrial base.
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