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    Home»Uncategorized»Dangote, NNPC Seal Strategic Gas Supply Agreements to Boost Industrial Expansion
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    Dangote, NNPC Seal Strategic Gas Supply Agreements to Boost Industrial Expansion

    LawanBy LawanFebruary 2, 2026Updated:February 2, 2026No Comments4 Mins Read
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    Dangote Industries Limited and the Nigerian National Petroleum Company Limited (NNPC Ltd) have sealed strategic Gas Sales and Purchase Agreements (GSPAs) aimed at meeting the growing energy needs of Dangote’s major expansion projects across key industrial sectors.

    The agreements involve three Dangote subsidiaries—Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc—and NNPC Ltd subsidiaries, Nigerian Gas Marketing Limited (NGML) and NNPC Gas Infrastructure Company Limited (NGIC).
    The upscaled gas supply arrangements are designed to support Dangote Group’s Vision 2030 by guaranteeing reliable, cleaner energy supply, improving production efficiency and sustaining ongoing and future expansion projects.

    The agreements were signed during the unveiling of the NNPC Gas Master Plan 2026 (NGMP 2026) at the NNPC Towers in Abuja over the weekend.
    Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, Mr. David Bird, signed on behalf of the refinery, while the Group Managing Director of Dangote Cement Plc, Mr. Arvind Pathak, signed for the cement company. Mr. Mustapha Matawalle executed the agreement on behalf of Dangote Fertiliser FZE.

    Speaking at the ceremony, Mr. Bird described the agreements as a critical milestone in the refinery’s expansion drive, noting that they demonstrate proactive steps to secure the substantial energy requirements needed for increased production capacity.

    According to him, the deal underscores the refinery’s commitment to scaling operations sustainably while ensuring stable and efficient energy supply.
    Mr. Pathak said the agreement aligns with Dangote Cement Plc’s strategic objectives, particularly in guaranteeing gas supply to support the adoption of compressed natural gas (CNG) as Autogas and meeting rising energy demand as production capacity expands across Nigeria.

    He added that the agreements also promote cleaner fuel adoption, both for transportation through CNG and for industrial production, reinforcing the company’s sustainability goals.

    For Dangote Fertiliser FZE, the agreements are expected to support its fertiliser capacity expansion projects, given that fertiliser production is heavily dependent on natural gas.

    Meanwhile, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the Gas Master Plan as a shift from policy formulation to disciplined execution, anchored on commercial viability and integrated 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,” Ekpo said.

    He noted that Nigeria’s challenge has never been its vast gas potential but the ability to translate resources into reliable supply, infrastructure into value and policy into measurable economic outcomes.

    Ekpo added that the Plan’s emphasis on supply reliability, infrastructure expansion, domestic and export market flexibility and strategic partnerships aligns with the Federal Government’s Decade of Gas Initiative, positioning gas as the backbone of Nigeria’s energy security, industrialisation and just energy transition.

    In his remarks, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the NGMP 2026 as a bold, execution-driven roadmap designed to unlock Nigeria’s vast gas potential and elevate the country into a globally competitive gas hub.

    Ojulari said Nigeria, with about 210 trillion cubic feet (Tcf) of proven gas reserves and upside potential of up to 600 Tcf, possesses one of the world’s most significant hydrocarbon basins, strengthened by the Petroleum Industry Act (PIA) and the Federal Government’s gas-focused energy transition agenda.

    He explained that the Plan aims 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 attracting over $60 billion in new investments across the oil and gas value chain by 2030.

    According to him, the Plan prioritises cost optimisation, operational excellence and the systematic advancement of gas resources, while strengthening supply to power generation, CNG, LPG, Mini-LNG and critical industrial off-takers.
    Ojulari reaffirmed NNPC Ltd’s commitment to a collaborative, investor-centric approach in implementing the Gas Master Plan, with strong alignment among industry stakeholders, partners and investors.

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