The Nigerian National Petroleum Company (NNPC) Limited has announced a groundbreaking Gas Sale and Purchase Agreement (GSPA) between its subsidiary, NNPC Gas Marketing Limited (NGML), and Dangote Petroleum Refinery and Petrochemicals FZE.
This partnership will supply natural gas to power the Dangote Refinery in Ibeju-Lekki, Lagos, for electricity generation and feedstock.
The agreement, formalized by NGML Managing Director Barr. Justin Ezeala and Dangote Group President Aliko Dangote at Dangote’s Corporate Head Office in Falomo, Lagos, underscores the government’s commitment to leveraging Nigeria’s vast gas resources. NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized that this deal aligns with President Bola Ahmed Tinubu’s goal to drive industrial growth and economic progress through strategic use of gas resources.
The arrangement requires NGML to supply 100 million standard cubic feet per day (MMSCF/D) of natural gas, divided between a firm 50 MMSCF/D and an additional 50 MMSCF/D on an interruptible basis, for an initial period of 10 years with renewal options. Remarkably, this large-scale investment is being undertaken with zero capital expenditure (CAPEX) outlay by the refinery, a first for NGML and any local gas distributor in Nigeria.
NNPC views this collaboration as essential to the operational success of the Dangote Refinery and to Nigeria’s domestic gas utilization efforts. According to the NNPCL statement, this agreement symbolizes a shared commitment by both companies to bolster local production, ensuring energy security and driving benefits for all Nigerians.
