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Shell Nigeria signs gas-supply agreement with Dangote Fertilizer

NIGERIA – Shell Nigeria and its joint venture partners have signed an agreement for a daily supply of 70 million standard cubic feet of gas to Dangote Fertilizer Co.

The JV consists of the Nigerian National Petroleum Company (NNPC), Dangote Fertiliser Limited, Shell Petroleum Development Company (SPDC), ENI, Gas Aggregation Company of Nigeria (GACN), Nigeria Agip Oil Company, and TotalEnergies.

The Gas Sale and Aggregation (GSA) agreement for the phase two fertilizer plant, was signed in Abuja on the side-line of the ongoing fifth Nigeria International Energy Summit (NIES 2022).

The deal which would help the  company increase fertilizer output while at the same time saving the country up to US$1.8 billion in foreign exchange earnings.

The signing was attended by the President of Dangote Group, Alhaji Aliko Dangote; Group Managing Director of NNPC, Mallam Mele Kyari; Country Chair of Osagie Okunbor; and ENI representatives.

Speaking at the event, Kyari said that the contract was perfected within a short period based on its importance to fertilizer production and the agro-economic growth of Nigeria.

As you are aware, Dangote Fertilizer is one of the biggest producers of fertilizer and this deal, will contribute to the surge of fertilizer production in Nigeria,”  Kyari posed.

The Nigerian government strives to ensure that the country becomes self-sufficient in the production of fertilizer.

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.

Responding, Alhaji 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 fertilizers for the country.

According to him, with this deal, Nigeria is set to become the largest producer of fertilizer in Africa, along with Indorama and Notore.

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

The agreement deal is important to the West African country as Dangote  Group produces the bulk of fertilizer to strengthen the agriculture sector not only for food security but also for energy security.

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