The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by Justin Ezeala, the Managing Director, NGML, and the President/CEO of the Dangote Group, Aliko Dangote, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery in Ibeju-Lekki, Lagos State.
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“This major milestone is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity,” Olufemi Soneye, the chief corporate communications officer, said in a statement issued on Wednesday.
This development, according to him, can be described as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.
He explained that under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), with 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization. NNPC Ltd., through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
“The agreement represents a milestone for both NNPC Ltd. and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd.’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country,” he said.