The Nigerian National Petroleum Company Gas Marketing Limited (NGML), a subsidiary of NNPCL, has signed a gas sale and purchase agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos.
The agreement, signed by the Managing Director of NGML, Justin Ezeala, and the Dangote Group Chief Executive Officer, Aliko Dangote, on Tuesday at the Dangote head office in Falomo, Lagos, provides for the supply of natural gas for the production of electricity and power supply to the refinery.
This milestone is in line with President Bola Tinubu's policy of using Nigeria's abundant gas resources to revive the country's industrial growth and boost its economic prosperity.
« This development, which sees a huge investment of this nature, made without any capital expenditure, has been described by many as being unprecedented in the history of NGML or any other local gas distribution company in the country », Indicates a press release from the NNPC published on Wednesday.
According to the press release, NGML will supply 100 million standard cubic feet of gas per day (50MMSCF/D representing firm supply and the remainder, 50MMSCF/D, interruptible natural gas supply for the refinery over an initial period of 10 years, with renewal and growth options.
This collaboration is an important step in ensuring the operational success of the Dangote Refinery and improving the utilization of domestic gas in Nigeria.
NNPC Ltd, through NGML, its gas marketing subsidiary, continues to spearhead efforts to promote the use of domestic gas to support industries and businesses across the country.
« The agreement represents a significant milestone for NNPC Ltd and Dangote Refinery, in line with their shared commitment to boost local production and supply vital products for the benefit of all Nigerians. It is also further evidence of NGML’s unwavering commitment to business excellence and the delivery of NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects all over the country », Adds the press release.
GIK/lb/te/Sf/APA
