The Nigerian National Petroleum Company (NNPC) Limited has signed a 10-year gas supply agreement with Dangote Refinery, marking a significant boost for local production and industrial growth in Nigeria.
The deal, signed on Tuesday at the Dangote Group headquarters in Lagos, 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.
The supply will last for an initial period of 10 years, with options to extend, according to a Wednesday statement by NNPC spokesperson, Olufemi Soneye.
He said under the new agreement that 50 million cubic feet were supplied on a guaranteed basis daily and another 50 million on a flexible arrangement.
“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…