The Nigerian National Petroleum Company (NNPC) Limited has announced a significant Gas Sale and Purchase Agreement (GSPA) between its subsidiary, NNPC Gas Marketing Limited (NGML), and Dangote Petroleum Refinery and Petrochemicals FZE. This partnership will facilitate the supply of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos, for power generation and feedstock purposes.

In a statement issued on Wednesday by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the deal was signed on Tuesday at the Dangote Group’s corporate headquarters in Lagos. The agreement involves NGML providing an initial 100 million standard cubic feet per day (MMSCF/D) of natural gas to the refinery, with a 50 MMSCF/D firm supply and 50 MMSCF/D on an interruptible basis. The contract spans 10 years, with options for renewal and expansion.

This move aligns with President Bola Tinubu’s economic policy to leverage Nigeria’s gas resources for industrial growth and economic advancement. The agreement is also notable for its zero capital expenditure (CAPEX) requirement, marking a unique milestone in NGML’s history as well as in the operations of any local gas distribution company in Nigeria.

According to the NNPC, this collaboration represents a pivotal step in enhancing domestic gas utilization, supporting the operational success of the Dangote Refinery, and boosting local production for the benefit of Nigerians. The agreement, NNPC stated, reinforces NGML’s dedication to achieving energy security for the nation through strategic gas projects.