Nigeria’s NNPC Signs Landmark Gas Supply Deal with Dangote Refinery
In a significant stride for Nigeria’s energy and industrial sectors, the Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPC Limited, has inked a Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals. This landmark agreement, signed by NGML Managing Director Justin Ezeala and Dangote Group President Aliko Dangote, was formalised on Tuesday at the Dangote Corporate Headquarters in Lagos, cementing a decade-long supply plan of natural gas to power and fuel operations at the Dangote Refinery.
A statement from NNPC’s spokesperson, Olufemi Soneye, hailed the agreement as a key move towards President Bola Tinubu’s economic vision of harnessing Nigeria’s vast gas reserves to drive industrial growth and national prosperity. “This development, which sees a massive investment secured without capital expenditure, is unprecedented for NGML or any Local Distribution Company in the country,” Soneye noted.
Under the terms, NGML will deliver 100 million standard cubic feet of gas daily, divided into a firm supply of 50 MMSCF/D and an additional 50 MMSCF/D on an interruptible basis. The initial 10-year agreement includes provisions for extension and increased supply capacity as demand grows.
According to Soneye, this partnership will be pivotal in ensuring operational efficiency at Dangote’s 435MW power plant, a facility capable of powering the entire Ibadan Electricity Distribution Company grid. He added, “This collaboration underscores NGML’s commitment to enhancing Nigeria’s domestic gas use, supporting industries, and driving local production to benefit all Nigerians.”
The deal also represents a milestone for both parties, aligning with the NNPC’s mandate to secure Nigeria’s energy future through strategic gas projects. By providing a reliable domestic energy source, this agreement is set to reduce the country’s dependency on imports, bolstering local industries and offering a robust supply line to the Dangote refinery.
In a closing note, Soneye stressed NGML’s dedication to business excellence and energy security, marking the agreement as “a significant step toward establishing Nigeria as a hub for gas-driven industrial development.”
