Dangote inks 10-yr gas supply deal with NNPC

Dangote Petroleum Refinery and Petrochemicals has signed a 10 year Gas Sale and Purchase Agreement (GSPA) with the Nigerian National Petroleum Company (NNPC) Gas Marketing Limited (NGML), a statement on Wednesday revealed. 

The agreement, signed at Dangote’s Corporate Headquarters in Lagos by NGML Managing Director Barr. Justin Ezeala and Dangote Group President Aliko Dangote, provides for a secure daily supply of 50 MMSCF/D with an additional 50 MMSCF/D as an interruptible reserve,the statement quoted. 

This strategic partnership will supply the Dangote Refinery with 100 million standard cubic feet per day (MMSCF/D) of natural gas for power and production over the next decade, setting the stage for industrial revitalization in Nigeria.

According to the statement, this collaboration will enable the refinery in Ibeju-Lekki, Lagos, to leverage natural gas for power generation and as essential feedstock, boosting its operational efficiency and supporting national energy goals.

The statement added that the  initiative is part of President Bola Ahmed Tinubu’s policy to tap into Nigeria’s extensive gas resources to drive industrialization and economic growth.

The deal marks NGML’s first major agreement without capital expenditure (CAPEX) commitments, a feat considered unprecedented in Nigeria’s gas distribution sector.

With this collaboration, NNPC Ltd reinforces its role in fostering local production and enhancing domestic gas usage to support industries and boost the economy.

“The agreement underscores NGML’s commitment to sustainable energy solutions, paving the way for greater stability, economic growth, and energy security for Nigeria,” the statement said.