The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Corporation Limited (NNPCL), has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals.
The agreement was formalized on Tuesday at Dangote’s Corporate Head Office in Falomo, Lagos, with NGML Managing Director Justin Ezeala and Dangote Group President and CEO, Aliko Dangote, present.
This agreement facilitates the supply of natural gas to the Dangote Refinery in Lagos, where it will be used for power generation and as a feedstock. According to a statement by NNPCL spokesperson Olufemi Soneye, the collaboration is a pivotal step toward supporting Nigeria’s industrial growth, aligning with President Bola Tinubu’s policy of harnessing the nation’s abundant gas resources for economic development.
Under the terms of the agreement, NGML will provide 100 million standard cubic feet of gas per day (MMSCF/D), split between a firm supply of 50 MMSCF/D and an interruptible supply of 50 MMSCF/D. The contract covers an initial period of 10 years with options for renewal, described as pivotal to meet the nation’s energy needs.
“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization,” stated Soneye. “NNPC Ltd, through NGML, continues to lead efforts in promoting domestic gas use to support industries and businesses nationwide.”
The Dangote Refinery’s power plant, with a capacity of 435 MW, is believed to have the potential to meet the total power requirement of the Ibadan Electricity Distribution Company, underscoring the project’s role in strengthening Nigeria’s energy infrastructure.
Philips Babatunde