NNPC, Dangote, Shell Others Sign Deal On Gas Supply

The Nigerian National Petroleum Corporation Ltd (NNPC) on Wednesday sealed a deal with partners on gas aggregation to increase local production of fertilisers in the country.

The Gas Aggregation Agreement was signed in Abuja on the sideline of the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition.”

The partners for the phase two fertiliser plant include Dangote Fertiliser Ltd., Shell Petroleum Development Company (SPDC), ENI, Gas Aggregation Company of Nigeria (GACN), Nigeria Agip Oil Company and Total Energies.

Malam Mele Kyari, the Group Managing Director, NNPC, during the signing said the deal was part of its drive to ensure greater utilisation of gas in the country, by way of conversion or monetisation in the form of Liquefied Natural Gas.

Kyari said NNPC had progressed its engagement with Dangote Group for the SPDC joint venture, which comprised of NNPC, Shell, ENI and TotalEnergies to deliver 70 million cubic of gas to phase two Dangote plant.

This, he said, would no doubt increase gas in the domestic market.

“But more importantly, it is a platform that will increase local production of fertiliser in our country.

“As you may be aware, it is government’s drive to ensure that we become self sufficient in the production of fertiliser in the country, and specifically for this year’s zero import of fertilisation in the country,"

“Currently, Dangote group provides about 65 per cent of all domestic production of fertiliser.

"And we are happy to sign the Gas Supply Agreement with them,” Kyari said.

In his remark, Chairman, Shell Company, Osagie Okunbor thanked the joint team that have worked extremely hard to sign the gas sale aggregation agreement.

“It is huge important to this country because already Dangote produces the bulk of fertiliser and we know how important the subject of agriculture is and for not just energy security, but also food security.

“This is why all of us on the SPDC JV led by the NNPC but also with my colleagues in Total Energies really pleased to be able to execute this agreement,” he said.

Also speaking, Alhaji Aliko Dangote, Chairman, Dangote Group Ltd., thanked the NNPC GMD for his effort in actualising the signing of the agreement.

Dangote said the additional gas would bring in more foreign exchange into the country in view of the energy crisis.

He said apart from Egypt, no other African country had the capacity, adding that it would meet with domestic market and export at least 1.8 billion dollars in terms of foreign exchange coming into the country.