The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPC Limited, has finalized a landmark Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals. This agreement, signed on November 12, 2024, at Dangote Group’s Corporate Headquarters in Lagos, aims to deliver a consistent supply of natural gas essential for powering operations and production at the Dangote Refinery.
During the signing ceremony, attended by key executives from both entities, NGML’s Managing Director, Justin Ezeala, and Dangote Group’s President and CEO, Aliko Dangote, formalized the contract, which specifies the supply of 100 million standard cubic feet per day (MMSCF/D) of natural gas. Under the terms, 50 MMSCF/D will be a firm, guaranteed supply, while an additional 50 MMSCF/D will be available on an interruptible basis. Initially set for 10 years, the agreement includes options for renewal and the potential to scale supply quantities to support future growth.
The GSPA represents a significant milestone for Nigeria’s industrial and energy sectors. It aligns with President Bola Tinubu’s broader strategy to harness Nigeria’s abundant natural gas resources, thereby catalyzing industrial growth, ensuring energy stability, and fostering economic development. Notably, this partnership is unprecedented in NGML’s history, as the investment was made with no upfront capital expenditure by NGML, showcasing a new approach to leveraging partnerships in Nigeria’s energy sector.
The Dangote Refinery, Africa’s largest and strategically positioned in Lagos, commenced operations in September 2024. The facility, with a capacity of 650,000 barrels per day, is designed to fulfill Nigeria’s domestic fuel requirements and reduce dependency on imported petroleum products. This agreement with NGML is expected to be integral to the refinery’s consistent operations, enhancing its production capabilities and reinforcing Nigeria’s self-sufficiency in fuel production.
Aliko Dangote, expressing gratitude for the collaboration, emphasized that the partnership would ensure the refinery’s long-term operational success and reduce Nigeria’s reliance on foreign energy supplies. NGML, as part of NNPCL, reaffirms its commitment to boosting domestic gas utilization by supporting industries, creating jobs, and sustaining the country’s energy needs.
According to NGML’s spokesperson, this agreement marks a new era in the company’s operational strategy, furthering Nigeria’s ambition to become a global player in energy production. NNPCL will work with Dangote Petroleum Refinery and other stakeholders to maximize Nigeria’s gas utilization for industrial growth and national prosperity.
This landmark GSPA exemplifies Nigeria’s strides toward self-reliance in the energy sector, promising a robust industrial base powered by the nation’s own resources.
