From Uche Usim and Adewale Sanyaolu (Abuja)
To further deepen its footprint in fertilizer production, the Nigerian National Petroleum Company (NNPC) Limited, and its Joint Venture (JV) partners which included Shell, Total and Eni yesterday, signed a 70 million standard cubic feet (Scuf) per day gas delivery agreement with Dangote fertilizer Limited.
The signing ceremony which took place on the sidelines of the Nigerian International Energy Summit (NIES) had the President of Dangote Industries Limited, Alhaji Aliko Dangote in attendance.
Speaking at the signing ceremony, the Group Managing Director (GMD) and Chief Executive Officer (CEO) of NNPC Limited, Mr.Mele Kyari, said the agreement was aimed at further boosting the capacity of Dangote Fertilizers for its Train 2 fertilizer plant.
He said the deal will no doubt increase the utilization of gas in the domestic market but more importantly will serve as a veritable means to increase local production of fertilizer in the country which is the aspiration of Government that the country becomes self sufficient in fertilizer production.
Specifically, he said, the target is zero imports of fertilizer for the country in 2022, adding that currently Dangote Fertilizer Limited produces about 65 per cent of all domestic production of fertilizer.
Speaking on behalf of the JV partners, Managing Director of Shell Petroleum Development Company and Chairman, Shell Companies in Nigeria, Mr. Osagie Okunbor, said the occasion is a momentous one for NNPC and the JV partners.
He said the deal is an important one for the country because Dangote produces the major bulk of fertilizer used in-country.
Osagie said the strategy was not only to boost food production and agriculture but also an avenue to secure energy security.
He said he is happy that Shell and its other partners are able to complete the deal, saying this is about the fastest Gas Sale Agreement (GSA) that they have been able to put together.
In his remarks, Dangote said the additional gas supply will help Dangote to produce more fertilizer in addition to what Indorama and Notore which has placed Nigeria as the second highest fertilizer producer after Egypt
He added that with the gas supply agreement, the company will be able to generate more additional foreign exchange, especially at a time when the country is confronted with energy crisis.
Dangote maintained that the country will be able to generate about $1.8 billion from fertilizer exports, thus creating additional foreign exchange earnings for the country