Dangote Expands Gas Supply Contracts in Deal with NNPC

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Dangote Industries Limited and the Nigerian National Petroleum Company Limited have deepened their commercial partnership with expanded gas supply agreements aimed at supporting major industrial projects and advancing Nigeria’s gas-led growth strategy.
Three Dangote subsidiaries, Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc, have scaled up their Gas Sales and Purchase Agreements with Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited, both units of NNPC Ltd. The revised agreements are designed to secure long-term gas supply for existing operations and planned capacity expansions.
The agreements were signed in Abuja at the unveiling of the NNPC Gas Master Plan 2026, a policy framework intended to accelerate gas production, infrastructure development and domestic utilisation.
Dangote Petroleum Refinery Chief Executive David Bird signed on behalf of the refinery. Dangote Cement Group Managing Director Arvid Pathak represented the cement business, while Mustapha Matawalle signed for Dangote Fertiliser FZE.
Dangote executives said the expanded agreements are central to the group’s Vision 2030 strategy, which prioritises increased output, cleaner energy use and scale-driven efficiency across its industrial footprint.
Bird said the refinery’s participation reflects a deliberate move to lock in energy supply ahead of anticipated increases in production capacity. He described the agreements as a critical milestone that provides certainty for the refinery’s growing gas requirements as it ramps up operations.
Pathak said the gas supply arrangements support Dangote Cement’s strategic objectives, including the adoption of compressed natural gas for transport and the use of gas to power expanded production lines. He said the agreements would help reduce emissions, lower energy costs and improve operational reliability as capacity in Nigeria increases.
Dangote Fertiliser said the gas supply deal is essential to its expansion plans, given that natural gas is the primary feedstock for fertiliser production. The company expects the agreement to underpin higher output as demand for fertiliser continues to rise across domestic and export markets.
The signing took place alongside the formal launch of the NNPC Gas Master Plan 2026, which government officials described as a shift from policy design to execution.
Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, said the plan marks a move toward a commercially driven and coordinated gas sector. He said Nigeria’s challenge has not been the size of its gas reserves but the ability to translate resources into reliable supply, infrastructure into economic value and policy into measurable outcomes.
Ekpo said the plan focuses on supply reliability, infrastructure expansion, market flexibility and strategic partnerships, aligning with the federal government’s Decade of Gas Initiative. He said natural gas is expected to serve as the backbone of Nigeria’s energy security, industrialisation drive and transition to cleaner energy.
NNPC Ltd Group Chief Executive Bashir Bayo Ojulari described the Gas Master Plan 2026 as an execution-focused roadmap aimed at positioning Nigeria as a competitive global gas hub.
Ojulari said Nigeria holds about 210 trillion cubic feet of proven gas reserves, with potential resources of up to 600 trillion cubic feet, making it one of the world’s most significant hydrocarbon basins. He said the Petroleum Industry Act and the government’s gas-focused transition agenda provide a strong policy foundation for investment.
According to Ojulari, the plan targets an increase in national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. He said it also aims to attract more than 60 billion dollars in new investment across the oil and gas value chain by the end of the decade.
He said the plan prioritises cost discipline, operational efficiency and the systematic upgrade of gas resources into bankable reserves, while expanding supply to power generation, transport fuels and industrial users.
Ojulari said NNPC has adopted a more collaborative and investor-focused approach in developing the plan, stressing that partnerships with major industrial consumers such as Dangote are central to turning Nigeria’s gas potential into sustained economic growth.

 

 

 

 

 

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