The Nigerian National
Petroleum Company (NNPC) Limited on Wednesday announced the successful execution of a Gas Sale and Purchase Agreement (GSPA) by its subsidiary, the NNPC Gas Marketing Limited (NGML) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement signed by the Managing Director, NGML, Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote 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.
The NNPC Ltd said the agreement is a major milestone in its effort to grow gas development in line with President Bola Ahmed Tinubu’s policy of promoting domestic utilisation of Nigeria’s abundant gas resources to revamp the nation’s industries, grow and kickstart its economic prosperity.
This development, the NNPC Ltd said in a statement by its Chief Corporate Communications Officer, Olufemi Soneye, would see a huge investments in the sector carried out with zero capital expenditure (CAPEX) outlay.
Soneye said many have described the GSPA as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
Under the terms of the agreement, NGML would supply 100 million standard cubic feet per day (MMSCF/D) of gas to Dangote Refinery, with 50MMSCF/D being firm supply, while 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 said.
He said NNPC Ltd, through NGML, its gas marketing subsidiary, would continue to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
The agreement, he explained, represents a major 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.
Also, he said It is 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.
