Dangote Industries Limited (DIL) signed gas supply agreements with Nigerian National Petroleum Company (NNPC) Limited for three of its subsidiaries.
The move is claimed to be part of measures to fulfill the increasing energy demands of DIL’s development initiatives.
According to a statement issued on Sunday, the agreements were signed during the unveiling of the NNPC gas master plan (GMP) 2026 at the NNPC Towers in Abuja.
According to the company, David Bird, managing director and CEO of the Dangote Petroleum Refinery, signed the agreement on behalf of the refinery; Arvid Pathak, group managing director of Dangote Cement Plc, represented the cement company, and Mustapha Matawalle signed on behalf of Dangote Fertiliser FZE.
The group stated that Dangote refinery, Dangote fertiliser, and Dangote cement expanded their gas sales and purchase agreements (GSPA) with NNPC subsidiaries.
The subsidiaries include Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).
The agreements are anticipated to help Dangote Group achieve its ‘Vision 2030’ by increasing manufacturing capacity, enhancing access to cleaner energy, and continuing ongoing expansion initiatives.
Bird stated during the signing event that the agreements represent the refinery’s strategic efforts to enhance capacity.
He also stated that they are a crucial milestone in the company’s expansion strategy and a proactive step in securing long-term gas requirements for the anticipated rise in production 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 will help Dangote Cement achieve its strategic goals by ensuring gas supply to support increasing production capacity and the use of compressed natural gas (CNG) as autogas.
According to the announcement, the arrangement will help Dangote Fertiliser expand its capacity, since natural gas remains a significant feedstock in fertiliser manufacture.
GMP’S FOCUS ON SUPPLY RELIABILITY ALIGNS WITH FG’S DECADE OF GAS INITIATIVE
Speaking at the inauguration, Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the master plan as a transition from policy formulation to disciplined execution based on commercial viability and sector-wide cooperation.
“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 said that the master plan’s emphasis on supply reliability, infrastructure growth, domestic and export market flexibility, and strategic alliances is consistent with the federal government’s Decade of Gas ambition.
In his speech, Bayo Ojulari, group chief executive officer (GCEO) of NNPC Ltd, highlighted NGMP 2026 as an execution-driven blueprint for unleashing Nigeria’s gas potential and placing the country as a globally competitive gas center.
On his part, Ojulari stated that Nigeria has around 210 trillion cubic feet (Tcf) of known gas reserves, with an upside potential of up to 600 Tcf, as supported by the Petroleum Industry Act (PIA) and the federal government’s gas-led energy transition program.
“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.
He stated that the plan prioritizes cost reduction, operational excellence, and increased gas supply to power generation, CNG, LPG, mini-LNG, and important industrial off-takers.
