The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPCL, has signed a groundbreaking Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos. The agreement, signed on Tuesday by NGML Managing Director Justin Ezeala and Dangote Group President Aliko Dangote, will see NGML supply natural gas to the refinery for power generation and as feedstock, supporting the facility’s operations for an initial period of 10 years.
Under the terms of the agreement, NGML will provide 100 million standard cubic feet of gas per day (MMSCF/D) to the refinery, with 50 MMSCF/D as a firm supply and an additional 50 MMSCF/D as an interruptible supply. This gas supply is essential for the operational success of the Dangote Refinery, which boasts a 435MW power plant capable of meeting the energy needs of an entire power distribution zone, such as the Ibadan Electricity Distribution Company.
NNPCL spokesperson Olufemi Soneye described the agreement as a major milestone, achieved with zero capital expenditure outlay, which marks an unprecedented development in the history of NGML or any gas Local Distribution Company in Nigeria. “This development is in line with President Bola Tinubu’s vision of harnessing Nigeria’s vast gas resources to drive industrial growth and economic prosperity,” Soneye said.
The collaboration between NGML and the Dangote Group is seen as a significant boost to Nigeria’s domestic gas utilization and energy security efforts. The supply deal supports Tinubu’s policy of utilizing natural gas to drive local production and reduce reliance on imports, positioning the Dangote Refinery as a key player in Nigeria’s industrial landscape.
“NNPC Ltd, through NGML, its gas marketing subsidiary, continues to lead efforts in promoting domestic gas use to support industries and businesses nationwide,” Soneye noted. The agreement, he added, exemplifies NGML’s commitment to business excellence and fulfilling NNPCL’s core mandate to ensure Nigeria’s energy security by executing strategic gas projects across the country.
The agreement includes options for renewal and expansion, with both parties expressing commitment to a partnership that could extend beyond the initial 10-year term. This strategic move by NGML and the Dangote Refinery aligns with national goals to boost local production, support industrial power needs, and provide vital products to benefit Nigerians.
