Dangote, NNPC sign gas supply deals to power expansion projects

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

The agreements are part of moves to address the increasing energy demands linked to DIL’s expanding operations.

According to a statement issued on Sunday, the deals were formalised at the launch of the NNPC gas master plan (GMP) 2026 held at the NNPC Towers in Abuja.

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

Dangote Group said the refinery, fertiliser, and cement businesses expanded their gas sales and purchase agreements (GSPA) with NNPC subsidiaries, namely Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The company noted that the agreements would advance its ‘Vision 2030’ by increasing production capacity, strengthening access to cleaner energy, and supporting ongoing and future expansion projects.

Speaking at the signing ceremony, Bird said the agreements underscore the refinery’s long-term strategy to grow capacity.

He described the deals as a major milestone in the expansion programme and a deliberate effort to secure sustainable gas supply to meet projected production increases.

Pathak said the arrangements would support Dangote Cement’s strategic plans by ensuring steady gas supply to drive higher output and facilitate the use of compressed natural gas (CNG) as autogas.

For Dangote Fertiliser, the statement said the agreement would aid capacity growth, given the central role of natural gas in fertiliser manufacturing.

GMP’S FOCUS ON SUPPLY RELIABILITY ALIGNS WITH FG’S DECADE OF GAS INITIATIVE

At the event, Ekperikpe Ekpo, minister of state for petroleum resources (gas), said the master plan represents a transition from policy formulation to focused implementation based on commercial discipline and coordinated execution.

“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.”

He added that the plan’s emphasis on supply reliability, infrastructure growth, domestic and export market flexibility, and partnerships aligns with the federal government’s Decade of Gas initiative.

In his remarks, Bayo Ojulari, group chief executive officer (GCEO) of NNPC Ltd, described NGMP 2026 as a practical roadmap designed to unlock Nigeria’s gas resources and position the country as a competitive global gas hub.

Ojulari said Nigeria has about 210 trillion cubic feet (Tcf) of proven gas reserves, with potential to reach 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,” he said.

He added that the master plan prioritises cost efficiency, operational performance, and stronger gas supply for power generation, CNG, LPG, mini-LNG, and major industrial users.