The Nigerian National Petroleum Company (NNPC) Limited, through its subsidiary NNPC Gas Marketing Limited (NGML), has finalized a significant Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
This was revealed in a statement by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Wednesday.
The agreement was signed on Tuesday at Dangote’s Corporate Headquarters in Lagos by NGML’s Managing Director, Barr. Justin Ezeala, and the President/CEO of Dangote Group, Aliko Dangote.
The deal secures the supply of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos, for power generation and as feedstock.
According to Soneye, this milestone aligns with President Bola Ahmed Tinubu’s policy to leverage Nigeria’s abundant gas resources to drive industrial growth and economic prosperity.
The agreement requires NGML to supply 100 million standard cubic feet per day (MMSCF/D) of natural gas—comprising 50 MMSCF/D of firm supply and an additional 50 MMSCF/D of interruptible supply—for an initial period of 10 years, with options for renewal.
The deal, which was achieved without any capital expenditure (CAPEX) by NGML, has been hailed as unprecedented in the history of local gas distribution. It is seen as a crucial step toward ensuring the smooth operation of the Dangote Refinery while boosting domestic gas utilization.
“This partnership represents a significant milestone for NNPCL and Dangote Refinery, demonstrating their shared commitment to enhancing local production and providing critical energy resources for Nigeria,” the statement read.
The NNPCL emphasized that the agreement underscores its dedication to ensuring Nigeria’s energy security through strategic gas projects nationwide.
