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NNPC, Dangote, others sign deal to ensure massive gas supply

By Dennis Mernyi
The Nigerian National Petroleum Corporation Ltd (NNPC) on Wednesday signed a deal with partners on gas aggregation to increase local production of fertilizer 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.”

Malam Mele Kyari, the Group Managing Director, NNPC, during the signing, said the deal was part of its drive to ensure greater utilization of gas in the country, by way of conversion or monetization 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 cubics of gas to phase two Dangote plant.

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

According to Kyari, “it is a platform that will increase local production of fertilizer in our country.

“As you may be aware, it is the 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 fertilization in the country.

“Currently, Dangote group provides about 65 percent of all domestic production of fertilizer. And we are happy to sign the Gas Supply Agreement with them,” Kyari said.

Also speaking, Mr. Osagie Okunbor, Chairman, Shell Company, thanked the joint team that has worked extremely hard to sign the gas sale aggregation agreement.

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

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“This is why all of us on the SPDC JV led by the NNPC but also with my colleagues in TotalEnergies 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 actualizing the signing of the agreement.

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

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

 

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