By Ayomide Otitoju
The Nigerian National Petroleum Company (NNPC) Limited has announced that its subsidiary, NNPC Gas Marketing Limited (NGML), has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE. This landmark deal, which will supply natural gas for power generation and as feedstock to the Dangote Refinery in Ibeju-Lekki, Lagos State, was disclosed in a statement by the NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday.
The agreement was formally signed on Tuesday at the Dangote Group’s Corporate Head Office in Falomo, Lagos, by NGML’s Managing Director, Barrister Justin Ezeala, and the President/CEO of Dangote Group, Aliko Dangote. According to Soneye, this milestone aligns with President Bola Ahmed Tinubu’s vision of leveraging Nigeria’s extensive gas resources to fuel industrial growth and drive economic prosperity.
Highlighting the strategic significance of the deal, Soneye noted that it stands out for being secured with zero capital expenditure (CAPEX) outlay, an achievement hailed as unprecedented in the history of NGML or any Local Distribution Company (LDC) in Nigeria.
Under the terms of the GSPA, NGML will supply the Dangote Refinery with 100 million standard cubic feet of gas per day (MMSCF/D), comprising 50 MMSCF/D in firm supply and 50 MMSCF/D in interruptible supply, for an initial period of 10 years, with options for renewal and expansion.
NNPC described the partnership as a key step toward ensuring the operational efficiency of the Dangote Refinery while enhancing domestic gas utilization in Nigeria. “The agreement represents a milestone for both NNPC Ltd. and Dangote Refinery, aligning with their shared commitment to boosting local production and providing essential products for the benefit of all Nigerians,” the statement read.
Soneye further emphasized NGML’s dedication to business excellence and fulfilling NNPC’s mandate of securing Nigeria’s energy future through strategic gas projects across the nation.
