NNPC Seals Major Gas Supply Deal with Dangote Refinery

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  • Agreement provides 100 million cubic feet of gas per day for power and feedstock
  • Initiative aligns with Nigeria’s push for domestic gas utilization and industrial growth

In a significant development for Nigeria’s energy sector, the Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPC Ltd., has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos.

FELLOW PRESS reports that the deal, formalized on Tuesday at Dangote’s Corporate Office in Falomo, Lagos, aims to supply natural gas to support the refinery’s power generation and production needs.

NGML’s Managing Director, Justin Ezeala, and Dangote Group President, Aliko Dangote, signed the agreement, marking a strategic step towards enhancing Nigeria’s domestic gas usage and supporting industrial operations in the country.

Under the terms, NGML will provide 100 million standard cubic feet of natural gas daily, split between 50 million cubic feet in firm supply and another 50 million in interruptible supply. This initial 10-year contract includes options for future renewal and expansion.

The supply of natural gas to the Dangote Refinery, which operates a substantial 435MW power plant, will directly support its energy needs, equating to the capacity of Ibadan’s entire electricity distribution network.

The NNPC spokesperson Olufemi Soneye noted that this collaboration supports Nigeria’s industrial ambitions under President Bola Tinubu’s policies to leverage the country’s rich gas reserves for economic revitalization.

“NNPC Ltd. is advancing efforts to ensure Nigeria’s energy security,” Soneye added.

This milestone highlights NGML’s commitment to fulfilling NNPC’s core mandate by promoting gas accessibility across industries.

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