The Nigerian National Petroleum Company (NNPC) Limited has secured a major deal to supply 100 million standard cubic feet of gas per day to Dangote Refinery, boosting local production and industrial growth. This 10-year agreement, signed on Tuesday, is a significant milestone in President Bola Tinubu’s policy to utilize Nigeria’s abundant gas resources.
Key Terms of the Agreement:
- Gas Supply: 100 million standard cubic feet per day (MMSCF/D), with 50MMSCF/D firm supply and 50MMSCF/D interruptible natural gas supply
- Duration: Initial 10-year period, with options for renewal and growth
- Purpose: Power generation and feedstock at Dangote Refinery in Ibeju-Lekki, Lagos State
This collaboration is expected to ensure the operational success of the Dangote Refinery and enhance Nigeria’s domestic gas utilization. NNPC Ltd, through its gas marketing subsidiary NGML, continues to promote the use of domestic gas to support industries and businesses nationwide.
The deal has been described as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country, with zero capital expenditure (CAPEX) outlay. It aligns with the shared commitment of NNPC Ltd and Dangote Refinery to boost local production and provide vital products for the benefit of all Nigerians.
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