Big boost for Nigeria's energy as NNPC and Dangote sign 10-year gas supply deal

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

NNPC Gas Marketing Limited (NGML) has entered into a gas supply agreement with Dangote Petroleum Refinery and Petrochemicals FZE.

The agreement, signed on Tuesday by NGML’s managing director, Justin Ezeala, and Aliko Dangote, president and CEO of the Dangote Group, will facilitate the provision of natural gas for power and feedstock at the refinery.

"Major Milestone": NNPC to deliver 100m cubic feet of gas daily to Dangote Refinery for 10 years
Source: UGC

This gas sale and purchase agreement (GSPA), finalized at Dangote’s Lagos headquarters, commits NGML — a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited — to supply around 100 million standard cubic feet of gas daily for a period of 10 years.

Olufemi Soneye, NNPC's chief corporate communications officer, stated on Wednesday that this major milestone aligns with President Bola Tinubu’s policy to harness Nigeria's vast gas resources to drive industrial growth and stimulate economic prosperity across the nation.

Soneye noted that this initiative, involving a substantial investment without any capital expenditure (CAPEX) outlay, is seen by many as a groundbreaking achievement, unmatched in the history of NGML or any local gas distribution company (LDC) in Nigeria.

He said:

“Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth."

The NNPC spokesperson described the partnership as a major advancement in supporting the operational success of the Dangote Refinery and expanding Nigeria’s domestic gas usage.

He noted that NNPC Ltd, through its gas marketing arm NGML, remains at the forefront of promoting domestic gas use to benefit industries and businesses nationwide.

According to Soneye, the agreement marks a key milestone for both companies, reflecting their shared dedication to strengthening local production and supplying essential resources for Nigerians.

He also highlighted that the deal underscores NGML’s commitment to excellence and NNPC Ltd’s mission to secure Nigeria’s energy future by implementing strategic gas initiatives nationwide.

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Source: Legit.ng