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NNPC Seals 10-Year Gas Supply Deal with Dangote Refinery

The Nigerian National Petroleum Company (NNPC) has signed a landmark Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

The agreement, which was executed by Justin Ezeala, Managing Director of NNPC Gas Marketing Limited (NGML), and Aliko Dangote, President/CEO of the Dangote Group, was finalized on Tuesday at the Dangote Group’s Corporate Head Office in Falomo, Lagos State.

This agreement will see NGML supply natural gas for power generation and feedstock to the Dangote Refinery, located in Ibeju-Lekki, Lagos State.

According to NNPC, the deal is a significant step toward supporting President Bola Ahmed Tinubu’s policy to utilize Nigeria’s vast gas resources to drive industrial growth and economic prosperity.

NNPC noted in a statement, “This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kick-starting its economic prosperity.”

Under the terms of the GSPA, NGML will provide 100 million standard cubic feet per day (mmscf/d) of natural gas. Of this, 50 mmscf/d will be a firm supply, while the remaining 50 mmscf/d will be an interruptible supply. The agreement is set for an initial period of 10 years, with options for renewal and growth.

NNPC emphasized that this collaboration is a major development in ensuring the operational success of the Dangote Refinery and enhancing the utilization of domestic gas resources.

“The collaboration is a significant step toward ensuring the operational success of the Dangote refinery and enhancing Nigeria’s domestic gas utilisation,” the company stated.

The GSPA is described as unprecedented in the history of NGML or any Gas Local Distribution Company (LDC) in Nigeria, as it is being executed with zero capital expenditure (CAPEX) outlay.

Dangote petrol

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NNPC highlighted that the agreement represents a major achievement for both NNPC and Dangote Refinery, aligning with their shared goal of increasing local production and providing vital products to benefit Nigerians.

Furthermore, the agreement underscores NGML’s ongoing commitment to fulfilling NNPC’s core mandate of ensuring Nigeria’s energy security through strategic gas projects.

NNPC concluded, “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.”

This new agreement between NNPC and Dangote Refinery is a significant step toward enhancing Nigeria’s energy infrastructure, supporting industrial growth, and advancing the country’s economic development goals.

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