Abiodun JIMOH
The Nigerian National Petroleum Company (NNPC) Ltd, through its subsidiary NNPC Gas Marketing Limited (NGML), has signed a groundbreaking Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals. This strategic partnership will supply the Dangote Refinery with 100 million standard cubic feet per day (MMSCF/D) of natural gas for power and production over the next decade, setting the stage for industrial revitalization in Nigeria.
The agreement, signed at Dangote’s Corporate Headquarters in Lagos by NGML Managing Director Barr. Justin Ezeala and Dangote Group President Aliko Dangote, provides for a secure daily supply of 50 MMSCF/D with an additional 50 MMSCF/D as an interruptible reserve. This collaboration will enable the refinery in Ibeju-Lekki, Lagos, to leverage natural gas for power generation and as essential feedstock, boosting its operational efficiency and supporting national energy goals.
This initiative is part of President Bola Ahmed Tinubu’s policy to tap into Nigeria’s extensive gas resources to drive industrialization and economic growth. Seen as a unique milestone, the deal marks NGML’s first major agreement without capital expenditure (CAPEX) commitments, a feat considered unprecedented in Nigeria’s gas distribution sector.
With this collaboration, NNPC Ltd reinforces its role in fostering local production and enhancing domestic gas usage to support industries and boost the economy. The agreement underscores NGML’s commitment to sustainable energy solutions, paving the way for greater stability, economic growth, and energy security for Nigeria.
