The NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala
and the President/CEO of the Dangote Group, Aliko Dangote at the
Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply
of natural gas for power generation and feedstock at the Dangote Refinery, in
Ibeju-Lekki, Lagos State.
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.
This development, which sees a huge investment of this nature penned with
zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company
(LDC) in the country.
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.
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.
Olusola Akintonde
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