This agreement will facilitate the supply of natural gas for both power generation and feedstock at the Dangote Refinery in Nigeria’s Lagos State. Credit: Aspectum/Shutterstock.

NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC), has signed a ten-year gas sale and purchase agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals.

NGML will deliver 100mscf/d of natural gas to the refinery, comprising 50mscf/d as firm supply and 50mscf/d as interruptible supply, for an initial ten-year term with options for renewal and expansion.

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This agreement will facilitate the supply of natural gas for both power generation and feedstock at the Dangote Refinery in Lagos State.

The signing ceremony, held at Dangote’s corporate head office in Falomo, Lagos State, was attended by NGML managing director Barr. Justin Ezeala and Dangote group president/CEO Aliko Dangote.

The partnership is in line with the government’s policy to harness the country’s gas resources for industrial growth and economic prosperity.

This collaboration will help ensure the operational success of the Dangote Refinery and boost domestic gas utilisation in Nigeria.

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The refinery, which began production in January, represents a $20bn investment.  

In August this year, the Dangote Refinery urged the Nigerian Upstream Petroleum Regulatory Commission to enforce the Domestic Crude Supply Obligation, a legal requirement for crude oil producers to allocate part of their output to domestic refineries.  

This call came after the refinery had challenges securing sufficient crude supplies. 

In July 2024, NNPC had reduced its stake in Dangote Refinery from 20% to 7.2% due to non-payment issues.

Despite committing to a 20% share, NNPC only paid for 7.2%, leading to the stake reduction.

In May, TotalEnergies secured its first supply agreement with Dangote Refinery.