The Nigerian National Petroleum Company (NNPC) and its partners, Shell Petroleum Development Company (SPDC), ENI, Gas Aggregation Company of Nigeria (GACN), Nigeria Agip Oil Company, and TotalEnergies have signed an agreement to supply gas to Dangote Industries Limited.
The agreement was Gas Supply and Aggregation Agreement (GSAA), and it was sealed in Abuja on the sidelines of the ongoing fifth Nigeria International Energy Summit (NIES 2022).
Speaking at the agreement-signing ceremony, Group Managing Director, NNPC, Mele Kyari said the pact would see the oil and gas companies supplying gas to the fertiliser plants of Dangote Industries.
“As you are aware, Dangote fertiliser is one of the biggest producers of fertiliser and this deal, which is to offer 70m scuff per day to Dangote fertilizer by the JV, will contribute to the surge of Fertiliser production in Nigeria. Of course, it will tremendously be positive to our agro-economy,” he added.
According to Kyari, the agreement was pertinent as it would boost the local production of fertiliser in the country.
“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% of all domestic production of fertiliser. And we are happy to sign the Gas Supply Agreement with them,” Kyari added.
On his part, Aliko Dangote, the President of Dangote Industries, said the new gas supply deal would enable his company to rake in at least $1.8 billion in terms of export earnings.
“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,” he explained.
