NNPC, Shell, Total ,others seal gas deal to power Nigeria’s biggest fertiliser company

UGO AMADI

The biggest energy company in Africa , Nigerian National Petroleum Corporation Limited (NNPC) and its joint venture partners -Shell Petroleum Development Company of Nigeria Limited (SPDC), Totalenergies EP Nigeria Limited, and Nigerian Agip Oil Company (NAOC) – on Wednesday signed an agreement for a daily supply of 70 million standard cubic feet of gas to Dangote Fertiliser Company to boost production and for local and export purposes.

.The Gas Aggregation Agreement was signed in Abuja on the side line 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 TotalEnergies.

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 (LNG).

Kyari said NNPC had progressed its engagement with Dangote Group so that 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 enable increase local production of fertiliser in our country.

“As you may be aware, it is government 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,” the GMD said.

In his remark, SPDC’s Managing Director, and Country Chair, Shell companies in Nigeria, Osagie Okunbor, described the agreement as  a significant step in supporting the Nigerian government’s agriculture policy for food security. “Dangote Fertiliser Limited currently produces the bulk of Nigeria’s fertiliser and this  agreement will greatly enable the company’s capacity.”

Dangote Fertiliser Company boasts Africa’s largest granulated urea fertiliser complex and produces around 65 percent of of Nigeria’s domestic fertiliser requirements.

Okunbor, thanked the joint team that have worked extremely hard to sign this gas sale aggregation agreement.

“It is huge important to this country because already Dangote produces the majority of fertiliser in this country 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 TotalEnergies really pleased to be able to execute this agreement,” he said.

Also speaking, Alhaji Aliko Dangote, Chairman, Dangote Group Ltd. thanked 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 has now our capacity, adding that it would meet with domestic market and export at least 1.8 billion dollars in term of foreign exchange coming into the country