In a significant move towards bolstering Nigeria’s energy sector, Aliko Dangote, President and CEO of Dangote Group, has affirmed his commitment to working closely with the Nigerian National Petroleum Company Limited (NNPC) to ensure the nation’s energy security. This collaboration is underscored by a recently signed 10-year Gas Sale and Purchase Agreement (GSPA) between NNPC Gas Marketing Limited (NGML), a subsidiary of NNPC, and Dangote Petroleum Refinery and Petrochemicals FZE.
A Strategic Partnership for Energy Stability
The GSPA entails NGML supplying 100 million standard cubic feet of natural gas per day to the Dangote Refinery located in Ibeju-Lekki, Lagos. This supply comprises 50 million standard cubic feet per day on a firm basis and an additional 50 million on an interruptible basis. The agreement, notable for its zero capital expenditure (CAPEX) outlay, is designed to provide a stable supply of natural gas for the refinery’s power generation and feedstock needs, thereby enhancing Nigeria’s local production capacity and industrial growth.
Aliko Dangote emphasized the importance of this partnership, stating that sourcing energy needs locally contributes to the country’s economic resilience and fosters the growth of Nigeria’s industrial sector.
Aligning with National Energy Goals
This collaboration aligns with President Bola Ahmed Tinubu’s vision of leveraging Nigeria’s vast gas resources to drive industrial growth and economic prosperity. The steady supply of natural gas from NNPC Ltd is expected to play a critical role in reducing Nigeria’s dependence on imported fuel products, thereby supporting the nation’s energy security objectives.
The Dangote Refinery: A Game Changer
The Dangote Refinery, one of the largest in Africa, is poised to significantly impact Nigeria’s energy landscape. With a capacity to process 650,000 barrels of crude oil per day, the refinery aims to meet Nigeria’s domestic fuel demand and export refined products to neighboring countries. The partnership with NNPC ensures that the refinery has the necessary natural gas supply to operate at full capacity, thereby contributing to the nation’s energy self-sufficiency.
Conclusion
The collaboration between Dangote Group and NNPC represents a strategic effort to enhance Nigeria’s energy security and industrial growth. By ensuring a stable supply of natural gas to the Dangote Refinery, this partnership is set to reduce the nation’s reliance on imported fuel, support local production, and drive economic prosperity. As Nigeria continues to harness its natural resources, such alliances are crucial in achieving sustainable energy solutions for the future.
