Dangote Refinery Partners with NNPCL on Gas Supply

NNPCL Powers Dangote Refinery with 10-Year Gas Contract

“This major milestone is in line with President Bola Tinubu's policy of utilising Nigeria's abundant gas...”

NNPCL partners with Dangote Refinery on gas supply, boosting Nigeria's energy security and industrial growth.

Nigeria's oil giant, NNPC Ltd., has secured a major deal with Dangote Petroleum Refinery and Petrochemicals, ensuring a steady supply of natural gas to the refinery for the next 10 years. This agreement, signed by Justin Ezeala, Managing Director of NNPC Gas Marketing Limited (NGML), and Aliko Dangote, President of Dangote Group, marks a significant milestone in Nigeria's energy sector.

Under this deal, NGML will supply 100 million standard cubic feet of gas per day, with 50 million standard cubic feet being firm supply and the remaining 50 million standard cubic feet being interruptible natural gas supply. This collaboration is expected to boost Nigeria's domestic gas utilization, supporting industries and businesses nationwide.

Benefits of the Agreement:

Steady Gas Supply: Ensures a reliable supply of natural gas to Dangote Refinery for power generation and feedstock.

Economic Growth: Aligns with President Bola Tinubu's policy of utilizing Nigeria's abundant gas resources to revamp the nation's industrial growth and kickstart economic prosperity.

Business Excellence: Demonstrates NGML's commitment to business excellence and fulfilling NNPC Ltd.'s core mandate of ensuring Nigeria's energy security.

This partnership is a significant step towards enhancing Nigeria's energy sector, and its impact will be felt across the country.

According to Soneye, the gas sale agreement stipulates that NGML will supply Dangote Refinery with 100 million standard cubic feet of natural gas daily, comprising:

° 50 million standard cubic feet per day (firm supply)

π 50 million standard cubic feet per day (interruptible supply)

The initial contract term is 10 years, with options for renewal and potential expansion.

“This major milestone is in line with President Bola Tinubu's policy of utilising Nigeria's abundant gas resources towards revamping the nation's industrial growth kickstarting its economic prosperity. and

“This development, which sees a huge investment of this nature penned with zero capital expenditure outlay, has been described by many as unprecedented in the history of NGML or any gas local distribution company in the country,” he stated.

NGML has committed to supplying Dangote Refinery with 100 million standard cubic feet of natural gas daily, consisting of 50 million standard cubic feet of firm supply and 50 million standard cubic feet of interruptible supply, under a 10-year agreement with renewal and expansion options.

“This collaboration is a significant step towards 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 statement added.