NNPCL and Dangote Refinery Ink Gas Supply Agreement
NNPCL has signed a gas sale agreement with Dangote Petroleum Refinery and Petrochemicals in Lagos. NGML Managing Director Justin Ezeala and Dangote Group CEO Aliko Dangote attended the signing at the Dangote Group’s headquarters. This deal marks a major milestone in Nigeria’s industrial development.
Agreement to Enhance Power and Production
NNPCL will provide 100 million standard cubic feet of natural gas daily to the Dangote Refinery. This includes a firm supply of 50 million cubic feet and an additional 50 million as an interruptible supply. The gas supply will support power generation and production feedstock at the refinery. This agreement strengthens Dangote Refinery’s operations and promotes domestic gas usage in Nigeria.
Boost to Local Gas Utilisation
The partnership aligns with President Bola Tinubu’s vision to leverage Nigeria’s gas resources for industrial growth and economic revitalisation. This initiative is described as unprecedented in scale for Nigeria’s gas distribution sector, demonstrating NNPCL’s commitment to domestic energy use while reducing costs typically associated with capital-intensive projects.
Long-Term Benefits and Renewals
The agreement, set for ten years with renewal options, strengthens Nigeria’s energy security and Dangote Refinery’s sustainability. NNPCL spokesperson Olufemi Soneye emphasised the collaboration’s role in securing long-term energy stability. This partnership also promotes growth across Nigeria’s local industries.
Commitment to Nigeria’s Energy Security
Through its subsidiary NGML, NNPCL continues to promote the use of natural gas across Nigeria’s industries, aiming to support businesses and drive economic expansion. This partnership showcases NNPCL’s dedication to boosting local production and ensuring the availability of essential energy resources within Nigeria.
Milestone for Nigeria’s Gas Industry
With the Dangote Refinery’s capacity to generate 435MW, enough to support the Ibadan Electricity Distribution Company’s power requirements, this collaboration underscores a crucial milestone in Nigeria’s gas and energy sectors. This agreement not only fosters industrial productivity but also strengthens the country’s path to self-sufficiency in energy.
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