Dangote Refinery Signed Ten-Year Gas Supply Deal with NNPC

SEATTLE (Oil Monster): According to a business news release, Dangote Petroleum Refinery and Petrochemicals and NNPC Gas Marketing Limited (NGML), a division of the Nigerian National Petroleum business (NNPC), have inked a ten-year gas sale and purchase agreement (GSPA).

Aliko Dangote, President and CEO of the Dangote Group, and Barr. Justin Ezeala, Managing Director of NGML, were present at the signing event, which took place at Dangote's corporate headquarters in Lagos State.

The deal states that NGML will provide the refinery with 100 mscf/d of natural gas, initially for ten years with the possibility of extension and further delivery. Natural gas will be used as feedstock and for power generation. In addition to increasing domestic gas consumption in the nation, the two parties' cooperation is anticipated to guarantee the refinery's operational success.

Mr. Femi Soneye, the Chief Corporate Communications Officer of NNPCL, has stated that the company no longer imports goods and now sources its supply from domestic refineries. If local supplies are more affordable, it will still favor them. Dangote Refinery, meanwhile, declared that it has more than 500 million liters of gasoline in stock, more than enough to meet the nation's needs.