Energy Capital & Power

NNPC and Partners Sign Gas Sale and Aggregation Agreement 

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The Nigerian National Petroleum Corporation (NNPC) and partners Shell Petroleum Development Company, Nigerian Agip Oil Company, TotalEnergies and the Gas Aggregation Company of Nigeria have signed a Gas Sale and Aggregation Agreement (GSAA). Signed during the fifth edition of the Nigerian International Energy Summit, the GSAA will increase natural gas supply to the Dangote fertilizer plant.

Under the terms of the deal, the oil and gas companies will supply 70 million standard cubic feet per day of natural gas to the Dangote plant to increase production. The partnership is set to save Nigeria approximately $1.8 billion in foreign exchange through the improvement in domestic gas supply networks.

NNPC’s Managing Director, Malam Mele Kyari, stated that, “As you may be aware, it is government’s drive to ensure that we become self-sufficient in the production of fertilizer in the country, and specifically, for this year’s zero import of fertilizer in the country. Currently, the Dangote group provides about 65% of all domestic production of fertilizer and we are happy to sign the GSAA with them.”

Meanwhile, Alhaji Aliko Dangote, Chairperson of the Dangote Group, added that, “This additional gas will help bring in more foreign exchange into the country, especially with the current energy crisis. With our fertilizer, Notore, and Indorama, we are second in Africa. Apart from Egypt, no other African country has our capacity. We will meet domestic market and also export, and we are talking about $1.8 billion in terms of foreign exchange coming into the country.”

Nigeria is making significant progress to enhance its domestic gas market, with deals such as the GSAA further solidifying the role gas plays in increasing industrialization in the west African country. Through the conversation and monetization of gas, particularly through Liquefied Natural Gas, Nigeria is improving domestic fertilizer production and driving economic growth.

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Keletso Moilwe

Keletso Moilwe

Keletso Moilwe is a Content Intern at Energy Capital & Power. She holds an Honours Degree is Geography and Environmental studies and is currently pursuing her Masters Degree at the University of Cape Town.