Dangote, NNPCL sign new deal to boost gas supply

Dangote Industries Limited and the Nigerian National Petroleum Company Limited have signed an enhanced gas supply agreement aimed at guaranteeing steady gas supply for the Dangote Group’s ongoing and future expansion projects.

Under the new deal, three Dangote subsidiaries, Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc, have expanded their existing Gas Sales and Purchase Agreements with two NNPC subsidiaries, Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited.

The agreement allows for increased volumes of gas supply to meet the growing energy needs of the Dangote Group as it scales up operations across its major industrial facilities.

The improved supply is expected to ensure more reliable operations and support higher production levels.

According to the companies, the upscaled gas arrangement aligns with the Dangote Group’s Vision 2030, which focuses on expansion, efficiency and sustainable industrial growth. The deal is also expected to promote cleaner energy use by reducing reliance on more polluting fuel sources.

The agreements were signed at the unveiling of the NNPC Gas Master Plan (GMP) 2026, tagged NGMP 2026 held at the NNPC Towers at the weekend in Abuja.

Managing Director, Dangote Petroleum Refinery, Mr. David Bird, signed on behalf of the refinery, while the Group Managing Director of Dangote Cement Plc, Mr. Arvid Pathak, signed on behalf of the cement company. Mr. Mustapha Matawalle signed on behalf of Dangote Fertiliser FZE.

Bird said that the agreement demonstrated the refinery’s bold steps to expand its capacity.

According to him, the agreements marked a critical milestone in the expansion drive as well as a proactive measure to lock in vast energy requirements for the anticipated increase in its production capacity.

Pathak described the agreement as an enabler of DCP’s strategic objectives.

He outlined that the agreement guarantees the gas required to support the drive towards CNG adoption as auto gas and to meet the increasing gas demand as local production capacities are expanded.

He added that the partnership also promotes the adoption of cleaner fuel for both auto gas through CNG and gas to support increased production output.

NNPCL affirms oil output boom over pipeline security

Dangote Fertiliser FZE stated that the agreement would support its fertiliser capacity expansion projects, given that fertiliser is a product of natural gas.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the GMP Master Plan as a deliberate pivot from policy articulation to disciplined execution, anchored on commercial viability and integrated sector-wide coordination.

He said: “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. 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”.

Ekpo further noted that the plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns seamlessly with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security, industrialisation, and just energy transition.

NNPC/L GCEO) Bashir Ojulari, described the NNPC Gas Master Plan 2026 as a bold, effective execution-anchored roadmap designed to unlock Nigeria’s immense gas potential and elevate the country into a globally competitive gas hub.

Ojulari noted that with about 210 trillion cubic feet (Tcf) of proven gas reserves and an upside potential of up to 600 Tcf, Nigeria possesses one of the most consequential hydrocarbon basins in the world; one reinforced by the Petroleum Industry Act (PIA) and the Federal Government’s gas-centric energy transition agenda.

He said: “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”.

He explained that the plan prioritises cost optimisation, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves, while strengthening gas supply to power generation, CNG, LPG, Mini-LNG, and critical industrial off-takers.

He reaffirmed his personal commitment as chief sponsor of the initiative, stressing that the company has adopted a more collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders, partners, and investors.

Join Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!