Dangote Group signs gas supply agreement with NNPC subsidiaries

Dangote Industries Limited (DIL) has signed gas supply agreements with the Nigerian National Petroleum Company (NNPC) Limited for three of its subsidiaries.

The move is said to be part of efforts to meet the growing energy needs of DIL’s expansion projects.

The agreements, according to a statement on Sunday, were signed during the unveiling of the NNPC gas master plan (GMP) 2026 at the NNPC Towers in Abuja.

The company said David Bird, the managing director and chief executive officer of the Dangote Petroleum Refinery, signed the deal on behalf of the refinery, Arvid Pathak, group managing director of Dangote Cement Plc, represented the cement company, while Mustapha Matawalle signed for Dangote Fertiliser FZE.

The group said Dangote refinery, Dangote fertiliser, and Dangote cement scaled up their gas sales and purchase agreements (GSPA) with subsidiaries of the NNPC.

The subsidiaries are Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The deals are expected to support Dangote Group’s ‘Vision 2030’ by boosting production capacity, improving access to cleaner energy, and sustaining ongoing expansion projects.

Speaking at the signing ceremony, Bird said the agreements reflect the refinery’s strategic steps to expand capacity.

He said they also represent a critical milestone in the company’s expansion drive and a proactive step to lock in long-term gas requirements for the anticipated increase in its production capacity.

Pathak said the agreements would enable Dangote Cement’s strategic objectives by guaranteeing gas supply to support increased production capacity and the adoption of compressed natural gas (CNG) as autogas.

For Dangote fertiliser, the statement said the agreement will support its capacity expansion, as natural gas remains a key input in fertiliser production.

Speaking at the event, Ekperikpe Ekpo, minister of state for petroleum resources (gas), described the master plan as a shift from policy articulation to disciplined execution anchored on commercial viability and sector-wide coordination.

“Today’s launch is not merely the unveiling of a document; it represents a deliberate shift towards a more integrated, commercially driven, and execution-focused gas sector, aligned with Nigeria’s development aspirations. Nigeria is fundamentally a gas Nation,” Ekpo said.

“With one of the largest proven gas reserves in Africa, our challenge has never been potential, but translation: translating resources into reliable supply, infrastructure into value, and policy into measurable outcomes for our economy and our people. The Gas Master Plan speaks directly to this challenge.”

The minister added that the master plan’s focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns with the federal government’s Decade of Gas initiative.

In his address, Bayo Ojulari, group chief executive officer (GCEO) of NNPC Ltd, described NGMP 2026 as an execution-anchored roadmap aimed at unlocking Nigeria’s gas potential and positioning the country as a globally competitive gas hub.

On his part, Ojulari said Nigeria holds about 210 trillion cubic feet (Tcf) of proven gas reserves, with upside potential of up to 600 Tcf, supported by the Petroleum Industry Act (PIA) and the federal government’s gas-led energy transition agenda.

“The Plan is structured not just to deliver – but to exceed- the Presidential mandate of increasing national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while catalysing over 60 billion dollars in new investments across the oil and gas value chain by 2030,” the NNPC boss said.

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