- Energy companies enter into Gas Sale and Aggregation Agreement.
- Domestic Gas Demand requirement for 2022 estimated at 4.4 billion cubic feet
- Nigeria is the second-largest fertiliser producer in Africa, according to Dangote.
The Dangote Group, the Nigerian National Petroleum Company Limited, Shell, Nigerian Agip Oil Company Limited, TotalEnergies, and the Gas Aggregation Company of Nigeria yesterday signed a Gas Sale and Aggregation Agreement in Abuja. The agreement took place on the sidelines of the ongoing Nigeria International Energy Summit. The deal coincided with a statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, releasing a new Domestic Gas Demand Requirement for 2022 and estimating a demand of 4.4 billion standard cubic feet for the domestic market.
Nigeria represents one of Africa’s heavyweights regarding hydrocarbon exploration and production, with over 206 trillion cubic feet of natural gas, but has a huge gas supply deficit despite rising demand. The African Energy Chamber recently put Nigeria’s annual gas production capacity at 1.450 billion cubic feet as the country recovers from 2020 low production levels due to COVID-19.
Aliko Dangote, Chairman and CEO of Dangote Group, stated that aside from Egypt, Nigeria was the topmost fertiliser producer in Africa, explaining that the Group’s Notore plant and Indorama’s plant have huge combined production capacity on the continent. The business magnate explained that aside from meeting the domestic demand for fertiliser, the Dangote group was working hard to ensure that Nigeria majorly retains its foreign exchange.
Mele Kyari, the Managing Director of the Nigerian National Petroleum Corporation, also stated that the additional gas would help bring in more foreign exchange into the country, especially with the current energy crisis. He commended the partners for working under serious pressure to ensure that the deal was struck, noting that it remains hugely important for the country. He explained that the current government takes agricultural production very seriously, noting that as the company which produces the bulk of Nigeria’s fertilisers, the Dangote group was well-positioned for the deal.