KEY POINTS
- NGML has signed a Gas Sale and Purchase Agreement with Dangote Refinery, supplying 100 million cubic feet of natural gas daily to support power and production needs.
- This agreement, structured with zero capital expenditure, aligns with Nigeria’s strategy for industrial growth and energy independence, as advocated by President Bola Tinubu.
- The 10-year partnership strengthens Nigeria’s energy security, setting a new standard in domestic gas supply and supporting national economic progress.
Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPC Limited, has signed a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals. This agreement, finalized at Dangote’s corporate headquarters in Falomo, Lagos, represents a step in advancing Nigeria’s industrial and energy objectives. According to NGML, the agreement aligns with President Bola Tinubu’s policy of leveraging Nigeria’s gas resources to drive industrial growth and economic progress. This collaboration will enable NGML to supply natural gas to Dangote Refinery, both for power generation and as a vital feedstock, boosting the refinery’s production capabilities.
The deal was signed by NGML Managing Director Justin Ezeala and Aliko Dangote, President and CEO of the Dangote Group. Industry experts are calling it a transformative partnership that sets a precedent in Nigeria’s energy sector, as the agreement was struck with zero capital expenditure outlay. This structure is unprecedented in NGML’s history, marking a strategic shift in how energy deals are structured within Nigeria.
Supporting refinery power needs and national gas strategy
Under the terms of this agreement, NGML will supply the Dangote Refinery with 100 million standard cubic feet of natural gas per day. This includes 50 million cubic feet as a firm supply and the remaining 50 million as an interruptible supply, ensuring flexibility in meeting the refinery’s power needs. The contract covers an initial period of 10 years, with options for renewal and further growth based on future requirements. The supply is intended to support Dangote Refinery’s operational success, including the plant’s 435MW power generation facility, capable of fulfilling the power needs of the Ibadan Electricity Distribution Company.
This gas agreement forms a central part of NNPC Ltd’s broader mission to promote the use of domestic gas across Nigeria. By advancing projects like this, NNPC Ltd seeks to support businesses nationwide, boosting industrial production and helping Nigeria achieve greater energy independence. Both NNPC Ltd and Dangote Group are united in their commitment to expanding local production and supplying vital resources to meet national needs.
Bolstering Nigeria’s energy security and industrial growth
The Punch reported that, this partnership with Dangote is part of NGML’s mission to enhance Nigeria’s energy security and advance local gas utilization. As NNPC Ltd’s gas marketing subsidiary, NGML continues to champion projects that support national energy security, while boosting domestic industry. This agreement marks a major milestone for both parties and underscores their commitment to business excellence and sustainable growth.
According to NNPCL spokesperson Olufemi Soneye, the collaboration represents a strategic step for Nigeria’s gas industry. As NGML moves forward with the Dangote Refinery partnership, it sets a new benchmark in the region’s gas supply landscape, ensuring energy resources fuel industrial growth and economic stability across Nigeria.
