Close
  • About Us
    • Board Members
    • Management Team
    • Stakeholders
    • Shareholders
    • Gas Purchase Process
    • Code of Conduct
  • Our Services
  • Gas Purchase Process
  • Newsroom
  • Publications
  • Photo Gallery
  • Mon-Fri 8am - 5pm
  • 094605830
  • info@gacn.com
  • About Us

      Overview

      GACN was formed in line with statutory requirement of the Nigerian Domestic Gas Supply & Pricing Regulations of 2008.

      Learn more

      Who we are

      Our Board Members

      Our Management Team

      Shareholders & Stakeholders

      Stakeholders

      Shareholders

      Our Processess

      Our Business Process Request

      Code of Conduct & Business Ethics

      GACN's Energy Transition

  • Services

      GACN Performs The Following

      GACN was formed in line with statutory requirement of the Nigerian Domestic Gas Supply & Pricing Regulations of 2008.

      Learn more

      Services

      Implementation of Domestic Gas Supply Obligation

      Ensure Balanced growth of the domestic gas projects

      Network Administration

      Support the development of Commercial Gas trading platform

      Implement GACN Gas Purchase Order “GPO” allocation, facilitate GSAA execution and contract administration

      Serve as a critical enabler for the attainment of Gas sector development objectives

  • Gas Purchase Process
  • Gas Sector News Update
  • Publications
  • Photo Gallery

MENU


  • About Us

      Overview

      GACN was formed in line with statutory requirement of the Nigerian Domestic Gas Supply & Pricing Regulations of 2008.

      Learn more

      Who we are

      Our Board Members

      Our Management Team

      Shareholders & Stakeholders

      Stakeholders

      Shareholders

      Our Processess

      Our Business Process Request

      Code of Conduct & Business Ethics

      GACN's Energy Transition

  • Services

      GACN Performs The Following

      GACN was formed in line with statutory requirement of the Nigerian Domestic Gas Supply & Pricing Regulations of 2008.

      Learn more

      Services

      Implementation of Domestic Gas Supply Obligation

      Ensure Balanced growth of the domestic gas projects

      Network Administration

      Support the development of Commercial Gas trading platform

      Implement GACN Gas Purchase Order “GPO” allocation, facilitate GSAA execution and contract administration

      Serve as a critical enabler for the attainment of Gas sector development objectives

  • Gas Purchase Process
  • Gas Sector News Update
  • Publications
  • Photo Gallery

Articles  ·  Events

GACN Facilitates Gas Supply to Dangote Fertilizer Plant

By Ruqaiyah Saidu  Published On March 14, 2022

Gas Aggregation Company Nigeria Limited (GACN), on Wednesday, facilitated the signing of a Gas Sale and Aggregation Agreement (GSAA) for the supply of natural gas by the joint venture comprising the Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company of Nigeria (SPDC), TotalEnergies EP Nigeria Limited (Total), and Nigerian Agip Oil Company Limited (NAOC) to Dangote Fertiliser Limited (DFL). The GSAA, which also has GACN as a party, is another milestone in the aggregator’s efforts aimed at increasing natural gas utilization in the Nigerian domestic market.

DFL’s fertilizer plant at Ibeju Lekki, Lagos State, is a flagship mega fertilizer project intended to support the Federal Government’s drive to grow the agricultural sector and in turn improve the Nigerian economy.

The GSAA, once operationalized, will see DFL supplied with up to 70 million standard cubic feet per day of natural gas to ramp up operations of the fertilizer plant and save Nigeria roughly USD 1.8 billion in foreign exchange.

Natural gas is an essential feedstock used in the production of fertilizers. The GSAA is expected to ensure the accessibility of natural gas to fulfill this purpose.

The signing of the agreement coincided with the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition”; and the release of a Domestic Gas Demand Requirement of 4.4 billion standard cubic feet by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

With over 206 trillion cubic feet of natural gas, Nigeria is considered one of Africa’s largest in hydrocarbon exploration and production. Despite these huge gas reserves, the exploitation of this natural resource remains very low despite rising demand.

During the signing ceremony, the President of Dangote Group, Alhaji Aliko Dangote described the signing of the agreement as an important milestone, noting that the additional gas supply to the fertilizer project would save Nigeria as high as about $1.8 billion in foreign exchange in light of the ongoing energy crisis. He added that save for Egypt, Nigeria has an unparalleled capacity to become the topmost fertilizer producer in Africa.

Mele Kyari, Group Managing Director of NNPC mentioned that the contract having been concluded in a relatively short period signals the importance of natural gas to the production of fertilizer and by extension, the agro-economic growth of Nigeria.

“As you are aware, Dangote Fertilizer is one of the biggest producers of fertilizer and this deal, which is to offer 70mmscf per day to Dangote Fertilizer by the JV, will contribute to the surge of fertilizer production in Nigeria. Of course, it will tremendously be positive to our agro-economy,” Kyari said.

“But more importantly, it is a platform that will increase local production of fertilizer in our country.

“As you may be aware, it is government’s drive to ensure that we become self-sufficient in the production of fertilizer in the country, and specifically for this year’s zero import of fertilization in the country.

“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,” Kyari added.

Osagie Okunbor, Managing Director of SPDC and Country Chair echoed this, commending the fellow signatories to the contract for their hard work and noting its importance to the development of Nigeria.

The Managing director of GACN, Mr. Olalekan Ogunleye also signed the agreement on behalf of GACN.

 


Dangote FertilizerEnergyGACNGas SupplyNatural Gas

Related Articles


Articles  ·  Events
GACN’S PARTICIPATION IN RMAFC GAS SENSITIZATION “FOLLOW-UP” FORUM IN BAYELSA
Articles  ·  Events
THE 2021 GAS SECTOR STAKEHOLDERS’ FORUM
Articles  ·  Events
Gas Aggregation Company Nigeria Limited (GACN) Commissions Renovated Primary Health Care Centre at Damangaza, FCT Abuja.
GACN 2021 END OF YEAR REPORT
Previous Article
THE CURTAIN FALLS ON THE GACN STAFF RETREAT, 2022.
Next Article
  • Categories

    • Articles 62
    • Events 57
      • Conferences 3
      • News Clip 3
    • Publications 15
  • Trending Publications

    • GACN ATTENDS RMAFC BAUCHI RETREAT
    • GACN at COP27
    • NNPC TRANSITION- A NEW DAWN FOR A NEW ERA
    • NIGERIAN OIL AND GAS CONFERENCE 2022
    • 2ND WEST AFRICA LPG EXPO AND NLPGA SUMMIT 2022
  • Archives

    • December 2022 2
    • August 2022 3
    • June 2022 2
    • May 2022 1
    • April 2022 2
    • March 2022 6
    • February 2022 1
    • January 2022 1
    • December 2021 4
    • November 2021 6
    • October 2021 2
    • September 2021 3
    • August 2021 3
    • July 2021 2
    • June 2021 3
    • May 2021 8
    • April 2021 5
    • March 2021 2
    • February 2021 3
    • January 2021 2
    • December 2020 1
    • November 2020 1
    • October 2020 2
    • September 2020 7


GACN

The Gas Aggregation Company Nigeria Limited (GACN) was incorporated in Nigeria on January 2010 for the purpose of stimulating growth of natural gas utilization in the Nigerian domestic market.

Quick Links

Home
About Us
Our Services
Newsroom
FAQ
Contact Us

Resources

Related Links
Powered By: Joseph Ameh

Address

info@gacn.com
1B Malcom Fraser Street Asokoro, Abuja, Nigeria
Facebook Twitter Linkedin Instagram
© Copyright 2022 GACN All Rights Reserved.