The Nigerian National Petroleum Company (NNPC) Limited has signed a 10-year gas supply agreement with Dangote Refinery, marking a significant boost for local production and industrial growth in Nigeria.
The deal, signed on Tuesday at the Dangote Group headquarters in Lagos, involves NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC Ltd., supplying 100 million standard cubic feet of natural gas daily to the Dangote Refinery in Ibeju-Lekki, Lagos State.
The supply will last for an initial period of 10 years, with options to extend, according to a Wednesday statement by NNPC spokesperson, Olufemi Soneye.
He said under the new agreement that 50 million cubic feet were supplied on a guaranteed basis daily and another 50 million on a flexible arrangement.
“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.
“This partnership aligns with our goal to make Nigeria a leader in gas utilization. It’s not just about business—it’s about powering industries and driving economic growth,” he added.
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NNPC said the deal is in line with President Bola Ahmed Tinubu’s vision to utilize Nigeria’s gas resources for industrial growth and economic development.
Moreover, Soneye mentioned that the partnership reflects NNPC’s commitment to using gas to support industries, create jobs, and strengthen the economy.
“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 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,” he said.
What you should know
The Dangote Refinery, the largest single-train refinery in Africa and Europe, represents a $20 billion investment by Africa’s richest man, Aliko Dangote.
- Currently refining approximately 420,000 barrels per day (bpd), the refinery has the potential to reach a capacity of 650,000 bpd once fully operational.
- At this capacity, it is capable of meeting Nigeria’s domestic energy needs, estimated at 40 million liters of petrol daily.
- Beyond serving Nigeria, the refinery is positioned to supply neighbouring African nations, including Ghana, Togo, and Benin Republic, thereby contributing to energy sufficiency across the continent.
