Shell Nigeria Signs Gas-Supply Agreement With Dangote Fertilizer

FILE PHOTO: A Shell logo is seen reflected in a car's side mirror at a petrol station in west London, Britain, January 29, 2015. REUTERS/Toby Melville

IBADAN, Nigeria–Shell PLC’s Nigerian unit and its joint venture partners signed an agreement Wednesday, for a daily supply of 70 million standard cubic feet of gas to Nigeria’s Dangote Fertilizer Co. to boost production for export and domestic use.

The other partners in the agreement are the Nigerian National Petroleum Corporation Ltd, TotalEnergies EP Nigeria Ltd., and Nigeria Agip Oil Co., the Shell Petroleum Development Company of Nigeria Ltd., or SPDC, said in a statement.

SPDC’s Managing Director and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said the agreement was “A significant step in supporting the Nigerian government’s agriculture policy for food security. Dangote Fertilizer Ltd. currently produces the bulk of Nigeria’s fertilizer and this agreement will greatly enable the company’s capacity.”

Dangote runs Africa’s largest granulated urea fertilizer complex and produces around 65% of Nigeria’s domestic fertilizer, the statement said.

Nigeria is the continent’s second largest producer of fertilizer according to Aliko Dangote, President and Chief Executive, Dangote Group. Dangote is located in the Lekki Free Trade Zone, Lagos.