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URBANEXPRESSLIVE > web-Page > Business > Sales Purchase: NNPCL, Dangote Secures Gas Sales Agreement Deal
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Sales Purchase: NNPCL, Dangote Secures Gas Sales Agreement Deal

urbanexpresslive
Last updated: November 14, 2024 8:59 am
urbanexpresslive
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Taiwo Popoola

The Nigerian National Petroleum Company Gas Marketing Limited, a subsidiary of Nigerian National Petroleum Company Limited, has secured a gas sale and purchase agreement with Dangote Petroleum Refinery and Petrochemicals.

The agreement, signed by the Managing Director of NGML, Justin Ezeala, and the President of the Dangote Group, Aliko Dangote, was received at the Corporate Head Office of Dangote in Falomo, Lagos.

In a statement by NNPCL spokesperson, Soneye Olufemi, the deal 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,” he stated.

According to Soneye, under the terms of the agreement, NGML will supply 100 million standard cubic feet of gas per day—50 MMSCF/D supply and the rest 50 MMSCF/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 towards ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.

“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 statement added.

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