deal
Dangote Petroleum Refinery and Nigerian National Petroleum Company Gas Marketing Limited have signed a gas sale and purchase agreement.
The agreement, signed by the Managing Director of NGML, Justin Ezeala, and the President/Chief Executive Officer of the Dangote Group, Aliko Dangote, on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos, outlined the supply of natural gas for power generation and feedstock at the refinery.
“This major milestone is in line with President Bola Tinubu’s policy of utilising Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.
“This development, which sees a huge investment of this nature penned with zero capital expenditure outlay, has been described by many as unprecedented in the history of NGML or any gas local distribution company in the country,“ a statement by the NNPCL spokesperson, Olufemi Soneye, said on Wednesday.
According to Soneye, under the terms of the agreement, NGML will supply 100 million standard cubic feet of gas per day—50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
“This collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilisation.
“NNPC Ltd., through NGML, its gas marketing subsidiary, continues to lead efforts in promoting the use of domestic gas to support industries and businesses nationwide.
“The agreement represents a milestone for both NNPC Ltd and Dangote refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.
“It is also further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country,“ the statement submitted.
The Punch reports that the Dangote refinery alone has a 435 MW power plant that is able to meet the total power requirement of the Ibadan Electricity Distribution Company.
The Minister of Information and National Orientation, Mohammed Idris, has warned politicians against linking stampedes…
Ohafia, Abia State, was plunged into mourning on Sunday following a tragic accident involving a…
An Islamic scholar and political activist, Dr. Usman Bugaje, has highlighted the inability of the…
The presidential candidate of the Social Democratic Party (SDP) in the 2023 general elections, Prince…
Vice President Kashim Shettima has mourned the victims of the recent tragic stampedes that claimed…
The National Agency for the Control of AIDS has advised Nigerians to prioritize their health…