Dangote Group Signs Strategic Gas Supply Agreements With NNPC Subsidiaries

Three subsidiaries of Dangote Industries Limited (DIL) have signed expanded gas supply agreements with units of the Nigerian National Petroleum Company Limited (NNPC Ltd) in a major deal aimed at supporting the conglomerate’s expansion drive and Nigeria’s broader gas sector goals.

The Gas Sales and Purchase Agreements (GSPAs) were signed at the unveiling of the NNPC Gas Master Plan (GMP) 2026 at the NNPC Towers in Abuja over the weekend.

Representing Dangote in the signing were:

David Bird, Managing Director & CEO of Dangote Petroleum Refinery,

Arvid Pathak, Group Managing Director of Dangote Cement Plc, and

Mustapha Matawalle, signing for Dangote Fertiliser FZE.

Under the agreements, the Dangote refinery, fertiliser and cement businesses have scaled up their gas supply arrangements with Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC) — both subsidiaries of NNPC Ltd.

Supporting Expansion and Cleaner Energy

The deal is part of efforts to meet the growing energy needs of DIL’s expansive industrial projects, including refining, fertiliser production and cement manufacturing.

According to Dangote officials, securing long‑term gas supply is critical to:

Expanding production capacity at the refinery,

Guaranteeing energy for cement operations, and

Supporting fertiliser output, where natural gas is a key feedstock.

For Dangote Cement, the agreement also paves the way for increased use of compressed natural gas (CNG) as an alternative fuel (“autogas”), helping both cost efficiency and cleaner operations.

Aligning With National Gas Strategy

NNPC Ltd’s Group CEO, Bayo Ojulari, said the new gas master plan and these strategic partnerships aim to unlock Nigeria’s extensive natural gas potential — estimated in the hundreds of trillions of cubic feet — and position the nation as a competitive gas hub.

The GMP 2026 roadmap targets national gas production of up to 10 billion cubic feet per day by 2027 and 12 billion by 2030, with the potential to catalyse more than $60 billion in new investments across the gas value chain.

Officials say greater gas availability for industries like Dangote’s will support Nigeria’s energy transition, boost industrial output and drive economic growth.

What It Means for Nigeria

Analysts see the agreements as a significant step in:

Reducing energy bottlenecks for major industrial players,

Increasing utilisation of domestic gas rather than reliance on liquid fuels, and

Advancing public‑private cooperation in the oil and gas sector.

With Nigeria holding vast gas reserves yet to be fully developed, such deals highlight growing confidence in the commercial gas market and the government’s commitment to execution‑focused energy policies