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NNPC Signs 10-Year Deal to Fuel Dangote Refinery with 100 MSCF of Gas Daily

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Key Points


  • NNPC subsidiary NGML will supply gas to Dangote Refinery.
  • The agreement includes firm and interruptible gas supply terms.
  • The deal supports President Bola Tinubu’s energy policies.

NNPC Gas Marketing Ltd. (NGML), a subsidiary of Nigerian National Petroleum Co. Ltd. (NNPC), has signed a gas sale and purchase agreement to supply 100 million standard cubic feet of gas per day to Dangote Petroleum Refinery and Petrochemicals FZE.

Key agreement supports Nigeria’s industrial growth

Olufemi Soneye, NNPC’s chief corporate communications officer, announced the agreement in a statement obtained by late Wednesday.

According to Soneye, Justin Ezeala, NGML’s managing director, and Aliko Dangote, president and CEO of the Dangote Group signed the agreement Tuesday at the company’s headquarters in Falomo, Lagos.

Soneye said the agreement provides natural gas for power generation and as a feedstock for the Dangote Refinery in Ibeju-Lekki, Lagos. 

Also, it supports President Bola Tinubu’s policy of harnessing Nigeria’s gas resources to drive industrial growth and economic prosperity.

“This development, which sees a large investment with zero capital expenditure outlay, has been described as unprecedented in the history of NGML or any gas local distribution company in the country,” Soneye said. 

According to Businessday, under the agreement, NGML will supply 100 million standard cubic feet of gas daily to the refinery, with 50 million as firm supply and the remaining 50 million as interruptible supply. The initial term is 10 years, with options for renewal and growth.

Deal drives energy security and local production

“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization,” he said.

Soneye said the agreement marks a milestone for both NNPC Ltd. and Dangote Refinery and aligns with their commitment to boosting local production and providing vital products for Nigerians.

He added that the deal underscores NGML’s commitment to business excellence and NNPC’s mission to ensure Nigeria’s energy security by executing strategic gas projects across the country.

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