NNPC Signs MOU With Dangote Fertiliser Ltd, Others To Boost Fertilizer Production Using Gas

The Nigerian National Petroleum Corporation Limited (NNPC) has sealed a contract deal with its partners on gas aggregation to increase local production of fertiliser in the country.

The MOU was signed in Abuja on the side line of the fifth Nigeria International Energy Summit NIES, with the theme “Revitalising the Industry: Future Fuels and Energy Transition”.

The partners for the deal tagged “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.

The Group Managing Director of NNPC, Malam Mele Kyar explained that the deal was part of the corporation’s drive to ensure greater utilisation of gas in the country through conversion to Liquefied Natural Gas (LNG).

Kyari said NNPC had progressed its engagement with Dangote Group so that the SPDC joint venture, which comprised NNPC, Shell, ENI and TotalEnergies would deliver 70 million cubic of gas to the phase two Dangote plant.

This, he said would no doubt increase gas in the domestic market.

“But more importantly is a platform that will enable increased local production of fertiliser in our country.

“As you may be aware, it is government’s desire to ensure that Nigeria becomes self sufficient in the production of fertiliser.

“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, the Chairman of Shell company, Mr Osagie Okunbor thanked the joint team that have worked extremely hard to sign the gas sale aggregation agreement.

“It is a huge sucess to this country because already Dangote produces the bulk of fertiliser in this country and we know how important agriculture is not just to the energy and security sectors but also for food security.

“This is why all of us on the SPDC JV led by the NNPC are really pleased to be able to execute this agreement,” he said.

Also speaking, Alhaji Aliko Dangote, Chairman, Dangote Group Ltd. thanked the NNPC for 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 the nation’s capacity in gas production, adding that it would meet with domestic market and export at least 1.8 billion dollars in terms of foreign exchange coming into the country

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