In order to boost the local production of gas in the country, the Nigerian National Petroleum Company (NNPC) Limited has signed a 10-year deal to supply gas to Dangote Refinery, Edum News reports.
According to the NNPC spokesperson, Olufemi Soneye, the deal was signed on Tuesday at the Dangote Group headquarters in Lagos.
Giving details, Soneye revealed that the deal involves NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC Ltd., supplying 100 million standard cubic feet of natural gas daily to the Dangote Refinery in Ibeju-Lekki, Lagos State.
He also explained that the supply will last for an initial period of 10 years but is still open for extension.
Soneye said, “Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 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 utilization.
“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.”
