NNPC and Dangote partnership to drive industrial growth with 100MMSCF/D gas supply deal

In a move set to strengthen Nigeria’s industrial and economic landscape, NNPC Gas Marketing Limited (NGML), a subsidiary of Nigerian National Petroleum Company (NNPC) Ltd., has formalized a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

The 10-year agreement, signed at Dangote Group’s corporate office in Falomo, Lagos, outlines plans to supply 100 million standard cubic feet per day (MMSCF/D) of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos State.

The NGML Managing Director, Barr. Justin Ezeala, and Dangote Group President/CEO, Aliko Dangote, represented their respective organizations during the signing. Under the terms, NGML will deliver a 50MMSCF/D firm supply of natural gas, with an additional 50MMSCF/D as an interruptible supply.

The deal is a significant step towards ensuring the refinery’s efficient operation, enabling it to generate power and serve as a critical feedstock for its petrochemical production. This collaboration aligns with President Bola Ahmed Tinubu’s vision to tap into Nigeria’s gas reserves to drive industrial growth and economic development.

With no capital expenditure (CAPEX) required from Dangote, the agreement is groundbreaking within Nigeria’s gas industry and represents NGML’s commitment to expanding the domestic gas market. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., described the collaboration as unprecedented for a local distribution company, stressing its potential to provide sustained energy for Nigeria’s manufacturing and industrial sectors.

This partnership not only enhances the viability of the Dangote Refinery, one of Africa’s largest and most strategically positioned industrial facilities but also reinforces NNPC’s mandate of securing Nigeria’s energy future.