NNPCL, Dangote Refinery seal landmark 10-year gas supply deal

This agreement commits to supplying 100 million standard cubic feet of natural gas per day for a decade.

The agreement was on Tuesday signed by Justin Ezeala, Nigeria Gas Marketing Limited (NGML), NGML’s Managing Director, and Aliko Dangote, the President/CEO of the Dangote Group, at the Corporate Head Office of Dangote in Falomo, Lagos State.

It outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State and geared towards enhancing local production and supporting industrial growth in Nigeria.

Olufemi O Soneye, Chief Corporate Communications Officer, NNPC Ltd, in a press release described the agreement as significant milestone, which is in line with President Bola Ahmed Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.Many have described this development, a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.

The terms of the agreement include NGML supplying 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.

This collaboration is a major step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.

NNPCL, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.

The agreement represents a milestone for both NNPCL and Dangote Refinery, aligning with their mutual commitment to boosting local production and providing vital products for the benefit of all Nigerians.