NNPCL, Dangote seal landmark 10-year gas supply deal

In a major step toward bolstering Nigeria’s energy sector, a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL) has signed a 10-year Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

This strategic alliance is set to enhance natural gas utilization for power generation and feedstock at the Dangote Refinery, representing a groundbreaking collaboration between two of Nigeria’s industrial giants.

The agreement was formalized in Lagos, where Justin Ezeala, Managing Director of NNPC Gas Marketing Limited (NGML), and Aliko Dangote, President and CEO of the Dangote Group, signed the document.

The deal aligns with President Bola Ahmed Tinubu’s vision to capitalize on Nigeria’s abundant natural gas resources to drive industrial growth and foster economic prosperity.

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In this historic arrangement, NGML will supply the Dangote Refinery with 100 million standard cubic feet per day (MMSCF/D) of natural gas—50 MMSCF/D on a firm supply basis and an additional 50 MMSCF/D as interruptible supply.

This supply structure not only ensures the refinery’s operational success but also reinforces Nigeria’s commitment to domestic gas utilization.

A statement from NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, highlighted the significance of this partnership. Describing the deal as “unprecedented,” Soneye noted that the zero capital expenditure (CAPEX) outlay marks a first for NGML and any local gas distribution company in Nigeria.

The collaboration signals a milestone for NNPC Ltd and the Dangote Refinery, underscoring both entities’ shared dedication to supporting local production, enhancing energy security, and driving industrial progress across Nigeria.

Through NGML, NNPC Ltd continues to lead the charge in promoting domestic gas use to fuel industries nationwide. This partnership not only strengthens the nation’s energy sector but also exemplifies NGML’s commitment to business excellence and NNPC Ltd’s mission to secure Nigeria’s energy future.