Nigeria’s largest cement maker, Dangote Cement has agreed a deal with the Tanzanian President to buy gas directly from the country’s Tanzania Petroleum Development Corporation.
Last week the cement maker announced that it had no choice but to shut down production in the East African Country due to the high cost of diesel, which was the alternative following the cut in gas supplies.
According to Reuters, Tanzania and Nigeria’s Dangote Cement reached a deal that will see natural gas been supplied to it manufacturing plant. The deal was brokered by Tanzanian President.
The deal now means rather than purchase gas through middle men, Dangote Cement will now buy directly from the state-run Tanzania Petroleum Development Corporation at a “reasonable” tariff.
Dangote Cement share price remained largely unchanged at the close of trading on Friday ending the week at N160, same as it closed in the past week.