The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has signed a landmark Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE to supply natural gas to the Dangote Refinery for the next decade.
Under the agreement, NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC Ltd., will provide 100 million standard cubic feet of gas per day (MMSCF/D) to the Dangote Refinery, located in Ibeju-Lekki, Lagos State.
The supply will be split into 50 MMSCF/D of firm gas and 50 MMSCF/D of interruptible gas.
The deal, signed on Tuesday at Dangote’s headquarters in Falomo, Lagos, is expected to support power generation and provide feedstock for the refinery, which is set to become one of the largest in Africa.
“This agreement is a crucial step towards boosting local production and driving industrial growth in Nigeria,” said Olufemi Soneye, NNPC Ltd.’s Chief Corporate Communications Officer, in a statement.
The agreement is also aligned with President Bola Tinubu’s policy to harness Nigeria’s vast natural gas resources to stimulate economic growth. Soneye described the deal as unprecedented, noting that it requires zero capital expenditure, a rare feat in the country’s energy sector.
The GSPA is set to last for an initial 10 years, with options for renewal, marking a significant milestone for both NNPC Ltd. and Dangote Group, the two parties involved.
“The agreement highlights NGML’s commitment to driving the use of domestic gas to power industries and businesses nationwide,” Soneye added, noting that the deal underscores NNPC Ltd.’s broader mission to ensure energy security and economic prosperity in Nigeria.
The partnership is expected to play a key role in ensuring the success of the Dangote Refinery, which is anticipated to significantly enhance Nigeria’s refining capacity and reduce dependence on imported fuel.
