The Nigerian National Petroleum Company (NNPCL) has finalized a 10-year Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE, marking a significant milestone in Nigeria’s energy landscape.
The agreement, announced on Wednesday, entails the supply of natural gas to the refinery for power generation and feedstock purposes.
According to NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, the agreement was signed by the Managing Director of NNPC Gas Marketing Limited (NGML), Barrister Justin Ezeala, and Dangote Group’s President/CEO, Aliko Dangote, at the company’s corporate headquarters in Falomo, Lagos. Under the agreement, NGML will supply 100 million standard cubic feet of gas daily, divided into 50 MMSCF/D as firm supply and an additional 50 MMSCF/D as interruptible supply.
“This collaboration supports the operational success of the Dangote Refinery and enhances Nigeria’s domestic gas utilization,” said Soneye. “It also aligns with President Bola Ahmed Tinubu’s vision of leveraging Nigeria’s gas resources to drive industrial and economic growth.”
The deal, celebrated as groundbreaking, comes with no capital expenditure (CAPEX) on NGML’s part, an unprecedented move for any local gas distribution company in Nigeria. It underscores NNPCL’s commitment to boosting local production and securing Nigeria’s energy needs.
NNPCL stated, “The agreement represents a milestone for both NNPCL and Dangote Refinery, reaffirming their dedication to strengthening Nigeria’s energy infrastructure and economic prosperity.”
The Dangote Refinery, located in Ibeju-Lekki, Lagos, is set to play a crucial role in reducing Nigeria’s reliance on imported fuel and enhancing local production capacity. This partnership with NNPCL reflects a strategic focus on fostering sustainable energy solutions for the country.
