By Adedapo Adesanya
The Joint Venture (JV) consisting of the Nigerian National Petroleum Company (NNPC) Limited, Shell, TotalEnergies and ENI has signed a multi-million dollars deal to supply 70 million standard cubic feet (scf) of gas to Dangote Fertilizer Company.
The signing which took place at the ongoing Nigeria International Energy Summit (NIES) was attended by the President of Dangote Group, Mr Aliko Dangote; Group Managing Director of NNPC, Mallam Mele Kyari; Country Chair of Osagie Okunbor; and ENI representatives.
The deals involving the JV of NNPC, Shell, ENI, and TotalEnergies will deliver 70million scf of gas daily to Dangote Fertilizer.
Speaking at the event, Mr Kyari said that the contract was perfected within a short period based on its importance to the production of fertiliser and the agro-economic growth of Nigeria.
“As you are aware, Dangote Fertilizer is one of the biggest producers of fertiliser and this deal, which is to offer 70m scf 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,” Mr Kyari said.
Responding, Mr Dangote stated that though the volume of gas for the deal may relatively be considered marginal, it will go a long way in promoting more access to fertilisers for the country.
This deal further signifies a positive outcome to Nigeria’s gas development plans which seeks to boost its domestic gas penetration aspirations in line with the Federal Government Decade of Gas campaign.
This is aimed at utilising the nation’s abundant gas resources to power the nation’s economy through a number of strategic gas expansion projects such as the ongoing OB3 and Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Projects.
Modupe Gbadeyanka