Indications that the recent face-off between the managements of the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery and Petrochemicals Company Limited over sourcing and supply of petroleum products in the downstream market is fizzling out emerged on Tuesdy with the signing of Sale and Purchase Agreement (GSPA) between NNPCL’s subsidiary, NNPC Gas Marketing Limited (NGML) and Dangote company.
Under the terms of the pact, Dangote Refinery will supply 100 million standard cubic feet per day (MMSCF/D) of natural gas for power and production over the next 10 years, thereby catalyzing current drive for rapid transformation of the nation’s industrial and other key sectors.
The NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, who issued a statement on the deal signed in Lagos, indicated that NGML’s Managing Director, Barrister Justin Ezeala, and Dangote Group President, Aliko Dangote, signed the agreement.
According to him, the agreement provides for a secure daily supply of 50 MMSCF/D with an additional 50 MMSCF/D as an interruptible reserve and will enable the refinery in Ibeju-Lekki, Lagos, to leverage natural gas for power generation and as essential feedstock, boosting its operational efficiency and supporting national energy goals.
Soneye maintained that initiative, which marked NGML’s first major agreement without capital expenditure (CAPEX) commitments, was part of President Bola Ahmed Tinubu’s policy to tap into Nigeria’s extensive gas resources to drive the nation’s industrialization and economic growth.
He stated that with this collaboration, NNPC Ltd reinforced its role in fostering local production and enhancing domestic gas usage to support industries and boost the economy.
In addition, Soneye pointed out that the pact underscored NGML’s commitment to sustainable energy solutions, paving the way for greater stability, economic growth, and energy security for Nigeria.
Photo Caption
L-R: Managing Director, Nigeria Gas Marketing Limited (NGML), Barr. Justin Ezeala (left) and President/CEO of the Dangote Group, Aliko Dangote, displaying the signed Gas Sale and Purchase Agreement (GSPA) for the supply of natural gas to the Dangote Petroleum Refinery and Petrochemicals on Tuesday in Abuja
