After the initial squabbles, Alhaji Aliko Dangote has secured another win, signing a major contract with NNPC Gas Marketing Limited (NGML) yesterday, for the supply of gas as energy source and feedstock to his refinery.

By last weekend, Nigerian Anchor reported the contract that was signed between Dangote Refinery and Independent Petroleum Marketers Association of Nigeria (IPMAN).

The agreement enables the marketers to buy fuel directly from the refinery rather than go through a middleman.

The current contract was brokered by Nigerian National Petroleum Corporation (NNPC) Limited for a gas supply deal through its subsidiary to the Dangote Petroleum Refinery and Petrochemicals FZE. 

This deal, finalized on Tuesday at Dangote’s Lagos office, will see NGML provide a consistent supply of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos, for power generation and as a feedstock.

Signed by Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President/CEO of the Dangote Group, the agreement includes a supply of 100 million standard cubic feet per day (MMSCF/D). 

Half of this supply is firm, while the remaining portion will be interruptible.

 This partnership is set to last for 10 years, with possibilities for renewal and expansion.

NNPC’s announcement reflects the deal as a vital step in advancing Nigeria’s industrial growth and aligning with President Bola Tinubu’s agenda to leverage the country’s gas resources. 

It also marks a unique achievement in Nigeria’s gas distribution sector, with no capital expenditure involved, setting a precedent for future ventures.

The agreement is poised to support the operational success of Dangote Refinery while contributing to the nation’s energy security and economic development, reinforcing NGML’s role in fulfilling NNPC’s commitment to the country’s energy goals.