NNPC, Shell JV, TotalEnergies others sign gas supply agreement for Dangote industries

Oredola Adeola

The Nigerian National Petroleum Corporation (NNPC) Ltd has sealed a Gas Supply and Aggregation Agreement (GSAA) with its partners(Aggregators) in the Shell Petroleum Development Company (SPDC) Joint Venture including Shell Nigeria, Total Energies Nigeria and Nigerian Agip Oil Company,NAOC, Ltd to supply gas to Dangote Industries Ltd (DIL).

Mallam Mele Kyari Group Managing Director, NNPC Ltd; Alhaji Aliko Dangote, President DIL); Mr. Osagie Okunbor, Country Chair, Shell Companies in Nigeria and Mr. Roberto Daniele, MD,NAOC Ltd at the ongoing ongoing 5th Nigeria International Energy Summit in Abuja on Thursday signed the agreement on behalf of their respective companies.

The deal, according to NNPC will ensure the monetization of over 70Million Metric Standard Cubic Feet per day (MMSCFD) gas volumes from Tunu Central Processing Facility (CPF) in the NNPC-SPDC JV to Dangote Industries Ltd, thereby increasing local production of fertiliser in the country.

The GMD NNPC at the signing said, “It’s government’s drive to ensure that we become self sufficient in the production of fertiliser in our country, and specifically for this year, it’s zero import of fertiliser into our country.

Aliko Dangote, during the deal signing session said the new gas supply deal would enable his company to generate more than $1.8 billion in export earnings.
He said, “Apart from Egypt, no other African country now has our capacity. We will meet the domestic market and then we will be able to export at least $1.8 billion in terms of foreign exchange coming into the country.

Parties to the Agreement include: #NNPC Ltd, Shell Nigeria, Total Energies Nigeria and NAOC, with the Gas Aggregation Company of Nigeria (GACN) as the Gas Aggregator.