NNPCL Seals 10-Year Gas Supply Deal With Dangote Refinery

The Nigerian National Petroleum Company (NNPC) Limited has announced that its subsidiary, NNPC Gas Marketing Limited (NGML), has successfully signed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

The announcement was made in a statement issued by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday.

The agreement was formalized on Tuesday at the Dangote Group’s corporate headquarters in Falomo, Lagos State, with Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President/CEO of the Dangote Group, signing the deal.

The GSPA covers the supply of natural gas for power generation and feedstock for the Dangote Refinery, located in Ibeju-Lekki, Lagos State.

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Soneye emphasized that this milestone aligns with President Bola Ahmed Tinubu’s policy to harness Nigeria’s vast gas resources to stimulate industrial growth and drive economic prosperity.

He also highlighted that this agreement, which involves substantial investment with no capital expenditure (CAPEX) outlay, is seen as unprecedented in the history of NGML and the broader gas distribution sector in Nigeria.

As part of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery for an initial 10-year term, with the option for renewal and expansion.

The supply will consist of 50 MMSCF/D of firm supply and another 50 MMSCF/D of interruptible natural gas.

NNPCL stated that the collaboration marks a significant step toward ensuring the operational success of the Dangote Refinery and advancing the use of domestic gas in Nigeria.

“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 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,”the statement added.

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