SEO Riders:
– NNPC and Dangote reinforce partnership to boost Nigeria’s energy sector
-10-year gas supply deal signed to enhance Dangote Refinery operations
– Naira-for-crude agreement supports local crude procurement for Dangote Refinery
The Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery have reaffirmed their commitment to a strategic partnership aimed at bolstering Nigeria’s energy sector. This collaboration is designed to promote healthy competition, ensure energy security, and drive industrial growth within the country.
A significant milestone in this partnership is the signing of a 10-year Gas Sale and Purchase Agreement (GSPA) between NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC, and Dangote Refinery. Under this agreement, NGML will supply 100 million standard cubic feet of natural gas per day to the refinery, comprising 50 million as a firm supply and an additional 50 million on an interruptible basis. This arrangement aims to provide a stable supply of natural gas for power generation and as feedstock, thereby enhancing the refinery’s operational efficiency and supporting Nigeria’s domestic gas utilization efforts.
Furthermore, NNPC has supplied 48 million barrels of crude oil to Dangote Refinery under a six-month naira-for-crude agreement initiated in October 2024. This deal, which allows the refinery to purchase crude oil in the local currency, is set to expire at the end of March 2025. Both parties are currently in discussions to renew the contract, aiming to maintain a consistent crude supply for the refinery.
These collaborative efforts underscore the shared vision of NNPC and Dangote to reduce Nigeria’s dependence on imported refined petroleum products, promote local production, and contribute to the nation’s economic resilience.
