In a decisive move to strengthen Nigeria’s industrial backbone and accelerate the global reach of its largest private energy project, the Dangote Group has secured fresh and expanded gas supply agreements with the Nigerian National Petroleum Company (NNPC) Limited to power its ambitious expansion plans for the Dangote Petroleum Refinery and other major subsidiaries.
These strategic contracts were inked against the backdrop of the unveiling of the Nigeria Gas Master Plan 2026 in Abuja, signalling a shift from policy formulation to implementation in Nigeria’s gas sector.
Representatives from Dangote and NNPC signed the enhanced Gas Sales and Purchase Agreements (GSPAs) at the NNPC Towers, with executives from Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc formalizing the deals with officials from Nigerian Gas Marketing Limited and the NNPC Gas Infrastructure Company Limited. While specific gas volumes and delivery schedules were not disclosed, industry insiders say these arrangements are designed to lock in a reliable energy supply for the companies’ expanding operations and new production lines.
The refinery’s managing director, David Bird, described the agreements as a critical milestone that ensures the refinery secures the energy it will need as it scales up its production capacity.
According to Bird, this proactive approach to securing natural gas underpins the facility’s growth trajectory and ability to meet rising global demand for refined products.
Arvid Pathak, Group Managing Director of Dangote Cement, emphasised that the deal also supports the company’s objectives to meet growing internal gas demand and advance the adoption of compressed natural gas (CNG) for industrial use and transport. For Dangote Fertiliser, the expanded agreement is expected to provide the feedstock necessary to support capacity enhancements in fertiliser output a sector heavily dependent on natural gas.
Officials from the Federal Ministry of Petroleum Resources (Gas) highlighted that the broader Gas Master Plan initiative aims to transform Nigeria’s abundant gas reserves into a reliable and cost-efficient supply chain that drives industrial growth, reduces bottlenecks, and attracts major investments.
The plan targets raising national gas production from about 8 billion cubic feet per day to 10 billion by 2027, with further expansion to 12 billion by 2030, while catalysing more than $60 billion in private and public investment across the gas value chain.
Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), underscored that the success of this plan rests on translating policy into concrete projects and partnerships like the one with Dangote.
NNPC’s Group Chief Executive Officer reiterated that strengthening strategic collaborations with key energy players is central to making Nigeria a competitive gas hub, enhancing supply reliability not only for heavy industries but also for power generation, LPG and mini-LNG markets, and cleaner energy solutions domestically.
By solidifying these gas supply foundations, the Dangote Group not only fortifies its Vision 2030 expansion blueprint but also positions its refinery and allied businesses to meet growing demand from international markets such as the United States and the United Kingdom regions increasingly looking to West African refiners as dependable sources of high-quality petroleum products.
NigeriaWith these strengthened fuel and energy linkages, the Dangote Petroleum Refinery and its sister firms are on track to reinforce Nigeria’s foothold in global energy markets, drive industrial growth at home, and play a more prominent role in the diversifying landscape of global oil and gas supply.
Source: Business Insider Africa
