The Nigerian National Petroleum Company (NNPC) Limited, through its subsidiary NNPC Gas Marketing Limited (NGML), has signed a landmark 10-year Gas Sale and Purchase Agreement with Dangote Petroleum Refinery and Petrochemicals.
The agreement was finalized at Dangote Group’s headquarters in Lagos and ensures a daily supply of 100 million standard cubic feet (MMSCF/D) of natural gas, including 50 MMSCF/D of firm supply and an additional 50 MMSCF/D of interruptible supply. This deal supports the Dangote Refinery’s power generation needs and serves as feedstock for operations at its Ibeju-Lekki facility.
The deal aligns with President Bola Ahmed Tinubu’s vision to harness Nigeria’s vast gas resources for industrial development. It will enhance gas monetization and domestic utilization, and also provide consistent fuel supply for power generation and industrial feedstock.
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Zero-capital expenditure outlay
The move marks a significant advancement in NNPC’s efforts to position gas as a central driver of the nation’s economy. It also represents a zero-capital expenditure (CAPEX) outlay, a pioneering approach in Nigeria’s gas sector.
Dangote refinery is located at Lekki Free Zone in Lagos, Nigeria and covers an area of 250,000 hectares. The Pipeline Infrastructure at the Dangote Petroleum Refinery is the largest in the world, with 1,100 kilometers to handle 3 Billion Standard Cubic Foot of gas per day. The Refinery alone has a 400MW Power Plant that is able to meet the total power requirement of Ibadan DisCo.
The Dangote refinery has a colossal capacity of 650,000 barrels per day (b/d). It aims to produce a range of refined products, including gasoline, diesel, kerosene, and aviation jet fuel. It aims to produce a range of refined products, including gasoline, diesel, kerosene, and aviation jet fuel.
