The Nigerian National Petroleum Corporation Limited has announced that its subsidiary, NNPC Gas Marketing Limited, has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals FZE.
This was disclosed in a statement by the Chief Corporate Communications Officer of NNPCL, Olufemi Soneye on Wednesday.
According to the statement, The GSPA between NNPC Gas Marketing Limited and Dangote Petroleum Refinery was officially signed on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State.
The agreement was signed by the Managing Director of NGML, Barr. Justin Ezeala, and the President/CEO of the Dangote Group, Aliko Dangote.
In the statement, Soneye stated that the GSPA details the provision of natural gas for both power generation and feedstock at the Dangote Refinery in Ibeju-Lekki, Lagos State.
He noted that the milestone aligns with President Bola Ahmed Tinubu’s policy of harnessing Nigeria’s abundant gas resources to revitalize the nation’s industrial sector and drive economic prosperity.
He said, “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 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, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
“This major milestone is 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.”
The NNPCL spokesperson further highlighted that the agreement allows NGML to supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery.
This includes 50 MMSCF/D of firm supply and 50 MMSCF/D of interruptible supply, for an initial period of 10 years.
Soneye added that the partnership would not only ensure the smooth operation of the Dangote refinery but also boost the utilization of Nigeria’s domestic gas resources.
“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 added.
He emphasized that the deal marks a significant milestone for both NNPC Ltd. and Dangote Refinery, reflecting their shared commitment to enhancing local production and providing essential products for the benefit of all Nigerians.
He stated that this development shows NGML’s unwavering focus on business excellence and its role in supporting NNPC Ltd.’s core mandate of ensuring Nigeria’s energy security through the development of strategic gas projects across the country.
