Back to business: NNPC Ltd, Dangote in 100mmscf/d GSPA
Sopuruchi Onwuka
After a season of open spat over domestic fuel market share and fair pricing, the Nigerian National Petroleum Company (NNPC) Limited, and the Dangote Refinery and Petrochemical Company Limited are back to new transaction on gas sales and purchase agreement.
A subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, the NNPC Gas Marketing Limited (NGML), stated that it has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
It stated that the agreement was signed between the Managing Director of NGML, Barr. Justin Ezeala, and the President/CEO of the Dangote Group, Aliko Dangote on Tueday at the Corporate Head Office of Dangote Group in Falomo, Lagos State.
According to the Group Chief Communications Officer of the NNPC Limited, Femi Soneye, the deal outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.
This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
This development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
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.
This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.
NNPC Ltd, 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 NNPC Ltd and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country.
