DANGOTE GROUP, NNPC SIGN ENHANCED GAS SUPPLY DEAL TO SUPPORT EXPANSION PROJECTS
Read Time:2 Minute, 27 Second
By Aishat Momoh. O.
Dangote Industries Limited (DIL) and the Nigerian National Petroleum Company Limited (NNPCL) have signed an enhanced gas supply agreement to ensure reliable energy supply for Dangote Group’s ongoing expansion projects.
Under the deal, three Dangote subsidiaries—Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc—have scaled up their Gas Sales and Purchase Agreements (GSPA) with two NNPC subsidiaries, Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).
The upscaled agreement is expected to accelerate Dangote Group’s Vision 2030, increasing output and ensuring a cleaner, more reliable energy supply for the company’s industrial operations.
The signing took place during the unveiling of the NNPC Gas Master Plan (NGMP) 2026 at the NNPC Towers in Abuja over the weekend.
Representing their companies, Mr. David Bird, Managing Director of Dangote Petroleum Refinery; Mr. Arvid Pathak, Group Managing Director of Dangote Cement Plc; and Mr. Mustapha Matawalle for Dangote Fertiliser FZE, executed the agreements.
Bird described the agreement as a milestone in the refinery’s expansion drive, ensuring adequate energy supply for anticipated production growth. Pathak highlighted that the deal would support Dangote Cement Plc’s strategic goals, including the adoption of CNG as auto gas and meeting increasing gas demands as production expands. Dangote Fertiliser FZE noted that the agreement would underpin its fertiliser capacity expansion, given the critical role of natural gas in production.
Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the NGMP 2026 as a pivot from policy articulation to disciplined execution, emphasizing commercial viability and sector-wide coordination. He said Nigeria’s vast gas reserves must be translated into reliable supply, infrastructure development, and measurable economic outcomes.
Ekpo stressed that the plan’s focus on supply reliability, infrastructure expansion, domestic and export flexibility, and strategic partnerships aligns with the Federal Government’s Decade of Gas Initiative, positioning natural gas as central to energy security, industrialisation, and a just energy transition.
NNPCL GCEO Bashir Ojulari described NGMP 2026 as a bold, execution-anchored roadmap aimed at unlocking Nigeria’s gas potential and establishing the country as a globally competitive gas hub. He noted Nigeria’s 210 trillion cubic feet (Tcf) of proven gas reserves, with potential up to 600 Tcf, and outlined the plan’s goal to increase national gas production to 10 Bcf/day by 2027 and 12 Bcf/day by 2030, while attracting over $60 billion in new investments across the oil and gas sector by 2030.
Ojulari said the plan prioritises cost optimisation, operational excellence, and systematic advancement of resources, ensuring strong gas supply to power generation, CNG, LPG, Mini-LNG, and industrial off-takers. He reaffirmed NNPC’s collaborative, investor-centric approach in shaping NGMP 2026, aligning with stakeholders, partners, and investors.
The agreement signals a significant step in strengthening Nigeria’s gas infrastructure and supporting Dangote Group’s industrial growth while advancing the country’s gas-driven economic development agenda.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0