NNPCL executes gas sale agreement with Dangote refinery
A Gas Sale and Purchase Agreement has been signed between the Dangote Petroleum Refinery and Petrochemicals, Lagos, and the Nigerian National Petroleum Company Gas Marketing Limited, a division of NNPCL.
The agreement, which was signed Tuesday at Dangote's Corporate Head Office in Falomo, Lagos, by NGML Managing Director Justin Ezeala and Dangote Group President/Chief Executive Officer Aliko Dangote, described the supply of natural gas for the refinery's feedstock and power generation.
This significant achievement is consistent with President Bola Tinubu's strategy of reviving Nigeria's industrial growth and economic prosperity by using the country's plentiful gas resources.
According to a statement released on Wednesday by NNPCL spokesperson Olufemi Soneye, "many have characterised this development as unprecedented in the history of NGML or any gas Local Distribution Company in the country, as it sees a huge investment of this nature penned with zero capital expenditure outlay."
According to Soneye, the deal states that NGML will provide 100 million standard cubic feet of gas per day to the refinery, with 50 million standard cubic feet per day being a firm supply and the remaining 50 million standard cubic feet per day being an interruptible natural gas supply. The agreement will be in effect for ten years initially, with the possibility of renewal and expansion.
"This partnership is an important step in improving Nigeria's domestic petrol consumption and guaranteeing the Dangote Refinery's operational success.
"NNPC Ltd. continues to spearhead initiatives to promote the use of domestic gas to help businesses and industries across the country through NGML, its gas marketing subsidiary.
In keeping with their shared goal of increasing local production and supplying essential items for the benefit of all Nigerians, the deal marks a significant milestone for both NNPC Ltd. and Dangote Refinery.
The statement said, "It is also additional evidence of NGML's steadfast dedication to business excellence and achieving NNPC Ltd's primary mission of guaranteeing Nigeria's energy security through the implementation of strategic gas projects throughout the nation."
The Ibadan Electricity Distribution Company's entire power needs may be satisfied by the 435MW power plant at the Dangote refinery alone.