NNPC, Dangote Refinery Sign 10-Year Gas Supply Deal to Enhance Production

The NNPC Gas Marketing Limited (NGML) has entered into a gas supply agreement with Dangote Petroleum Refinery and Petrochemicals FZE.

The deal was formalised on Tuesday by Justin Ezeala, managing director of NGML, and Aliko Dangote, president and CEO of the Dangote Group.

The gas sale and purchase agreement (GSPA), signed at Dangote’s corporate headquarters in Lagos, secures the supply of natural gas for power generation and as feedstock for the refinery.

Through this arrangement, NGML — a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited — will provide approximately 100 million standard cubic feet of gas daily.

In a statement issued on Wednesday, Olufemi Soneye, NNPC’s chief corporate communications officer, noted that this milestone aligns with President Bola Tinubu’s policy to leverage Nigeria’s abundant gas resources to stimulate industrial growth and economic prosperity across the nation.

“Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 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,” the statement reads.

“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.”

Soneye highlighted the agreement as a landmark achievement for both companies, supporting their shared commitment to enhancing local production and delivering essential products to benefit all Nigerians.

He added that the deal underscores NGML’s dedication to business excellence and to fulfilling NNPC Ltd’s core mandate of securing Nigeria’s energy needs through strategic gas initiatives nationwide.

Faridah Abdulkadiri

Follow us on: