In a significant step toward enhancing Nigeria’s energy production capacity, NNPC Gas Marketing Limited (NGML) has signed a gas supply agreement with Dangote Petroleum Refinery and Petrochemicals FZE. The agreement was formalized on Tuesday at Dangote’s corporate headquarters in Lagos, with Justin Ezeala, managing director of NGML, and Aliko Dangote, president and CEO of the Dangote Group, signing on behalf of their respective organizations.
The gas sale and purchase agreement (GSPA) ensures a steady supply of natural gas for both power generation and feedstock at the refinery, supporting its operational efficiency. As part of the arrangement, NGML — a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited — will supply approximately 100 million standard cubic feet of gas daily to the Dangote Refinery.
Under the terms of the agreement, NGML has committed to deliver 50 million standard cubic feet per day (MMSCF/D) as a firm supply and an additional 50 MMSCF/D as an interruptible supply. This contract spans an initial period of ten years, with options for renewal and further capacity growth.
In a statement on Wednesday, Olufemi Soneye, NNPC’s chief corporate communications officer, described the agreement as a “landmark achievement” for both entities and emphasized its alignment with President Bola Tinubu’s policy of leveraging Nigeria’s natural gas resources to drive industrial and economic growth.
“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization,” Soneye stated, adding that the deal highlights NGML’s dedication to supporting local production and NNPC Ltd’s core mandate of securing Nigeria’s energy needs through strategic gas initiatives nationwide.
The partnership underscores the commitment of NNPC and the Dangote Group to strengthening Nigeria’s industrial capacity and expanding its energy infrastructure, with benefits expected to extend to both the economy and the wider population.