The Nigerian National Petroleum Company Gas Marketing Limited, a subsidiary of NNPCL, has executed a Gas Sale and Purchase Agreement with the Dangote Petroleum Refinery and Petrochemicals, Lagos.
The agreement, signed by the Managing Director of NGML, Justin Ezeala, and the President/Chief Executive Officer of the Dangote Group, Aliko Dangote, on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos, outlined the supply of natural gas for power generation and feedstock at the refinery.
“This major milestone is in line with President Bola Tinubu’s policy of utilising 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 outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company in the country,“ a statement by the NNPCL spokesperson, Olufemi Soneye, said on Wednesday.
According to Soneye, under the terms of the agreement, NGML will supply 100 million standard cubic feet of gas per day – 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.