The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of the NNPC Limited, has signed a significant Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos.
The agreement, formalized on Tuesday by NGML's Managing Director Justin Ezeala and Dangote Group's President Aliko Dangote at the company's headquarters, will facilitate the supply of natural gas for both power generation and as feedstock for the refinery.
This landmark deal aligns with President Bola Tinubu’s initiative to harness Nigeria’s abundant gas resources to drive industrial growth and economic prosperity.
The agreement is particularly notable as it involves a substantial investment without any capital expenditure outlay, marking an unprecedented move in the history of NGML and local gas distribution companies in Nigeria.
Under the terms of the contract, NGML will deliver 100 million standard cubic feet of gas daily to the refinery—50 million cubic feet as firm supply and the remaining 50 million as interruptible supply—over an initial period of 10 years, with options for renewal and expansion.
This collaboration is poised to enhance the operational efficiency of the Dangote Refinery and boost domestic gas utilization in Nigeria. NGML continues to spearhead efforts to promote the use of local gas resources to support industries nationwide.
The agreement signifies a mutual commitment between NNPC Ltd and Dangote Refinery to increase local production and provide essential products for Nigerians.
Additionally, this development reinforces NGML's dedication to business excellence and its mandate to ensure energy security in Nigeria through strategic gas projects across the country.
Notably, the Dangote refinery is equipped with a 435MW power plant capable of meeting the total power requirements of the Ibadan Electricity Distribution Company.
