NNPC Gas Marketing Limited (NGML) has entered into a gas supply agreement with Dangote Petroleum Refinery and Petrochemicals FZE.
The agreement, signed by NGML’s managing director, Justin Ezeala, and Aliko Dangote, president and CEO of the Dangote Group, will facilitate the provision of natural gas for power and feedstock at the refinery.
This gas sale and purchase agreement (GSPA), finalized at Dangote’s Lagos headquarters, commits NGML—a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited—to supply around 100 million standard cubic feet of gas daily for ten years.
It would be recalled that TimesNow.com.ng earlier reported that the NGML and Axxela Limited inaugurated a 5km natural gas pipeline in Victoria Island, Lagos, which is expected to stretch 72.5 km to the Lekki metropolis.
Olufemi Soneye, NNPC’s chief corporate communications officer, stated that this major milestone aligns with President Bola Tinubu’s policy to harness Nigeria’s vast gas resources to drive industrial growth and stimulate economic prosperity nationwide.
He noted that this initiative, involving a substantial investment without any capital expenditure (CAPEX) outlay, is seen by many as a groundbreaking achievement, unmatched in the history of NGML or any local gas distribution company (LDC) in Nigeria.
He said:
The NNPC spokesperson described the partnership as a major advancement in supporting the operational success of the Dangote Refinery and expanding Nigeria’s domestic gas usage.
The statement noted that NNPC Ltd, through its gas marketing arm NGML, remains at the forefront of promoting domestic gas use to benefit industries and businesses nationwide.
According to Soneye, the agreement marks a key milestone for both companies, reflecting their shared dedication to strengthening local production and supplying essential resources for Nigerians.
He also highlighted that the deal underscores NGML’s commitment to excellence and NNPC Ltd’s mission to secure Nigeria’s energy future by implementing strategic gas initiatives nationwide.
In 2023, the NNPC secured a loan to acquire a 20% stake in the Dangote Refinery; however, after missing the payment deadline for the remaining balance, the stake was reduced to 7.2%.
In related news, TimesNow.com.ng reported that the federal government had recommended that the NNPC invest in local refineries rather than operating government-owned ones.
Heineken Lokpobiri, the minister of state for petroleum resources (oil), stated that the federal government intends to encourage the national oil firm to acquire shares in the planned and existing private refineries.
He said the government would encourage NNPC Ltd to adopt a new model allowing private investors to run the refineries optimally.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
