More

    Dangote Group, NNPC deepen gas partnership to support expansion projects

    Dangote Industries Limited and the Nigerian National Petroleum Company Limited have entered into expanded gas supply agreements aimed at supporting the energy needs of Dangote’s growing industrial operations.

    The agreements involve three Dangote subsidiaries—Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc—and NNPC subsidiaries, Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited. 

    The updated Gas Sales and Purchase Agreements are designed to meet rising energy demands linked to ongoing and planned expansion projects across the conglomerate.

    The enhanced supply arrangements are expected to advance Dangote Group’s Vision 2030 by boosting production capacity, improving access to cleaner energy, and sustaining industrial growth. 

    The agreements were formalised during the launch of the NNPC Gas Master Plan 2026, held at the NNPC Towers in Abuja.

    Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, David Bird, signed on behalf of the refinery, while Arvid Pathak, Group Managing Director of Dangote Cement Plc, represented the cement business. Dangote Fertiliser FZE was represented by Mustapha Matawalle.

    Speaking at the signing ceremony, Bird described the agreements as a significant step in the refinery’s expansion strategy, noting that securing reliable gas supply was essential to supporting increased production capacity. 

    Pathak also said the agreements aligned with Dangote Cement’s long-term strategic objectives.

    The agreements are expected to guarantee gas supply for the adoption of compressed natural gas as Autogas, while also meeting rising demand associated with expanded industrial production. 

    They further promote the use of cleaner fuels to support both transportation and manufacturing activities.

    For Dangote Fertiliser FZE, the gas supply arrangement is expected to underpin capacity expansion, given natural gas’s central role as a key input in fertiliser production.

    Don’t Miss This: Alero Mobola Adollo Appointed Independent Non-Executive Director at First Asset Management

    At the event, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the Gas Master Plan as a shift from policy development to focused execution, emphasising commercial viability and coordinated sector-wide implementation. 

    He noted that the plan aims to convert Nigeria’s gas resources into reliable supply, infrastructure value, and measurable economic outcomes.

    Ekpo added that the plan’s emphasis on supply reliability, infrastructure development, market flexibility, and strategic partnerships aligns with the Federal Government’s Decade of Gas Initiative, positioning natural gas as a cornerstone of Nigeria’s energy security and industrialisation efforts.

    Also speaking, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, described the Gas Master Plan 2026 as a results-driven roadmap designed to unlock Nigeria’s gas potential and strengthen the country’s position in the global gas market.

    Ojulari noted that Nigeria holds about 210 trillion cubic feet of proven gas reserves, with significant additional potential, supported by the Petroleum Industry Act and the government’s gas-focused energy transition agenda. 

    He said the plan targets increased gas production while attracting substantial investment across the oil and gas value chain by 2030.

    According to him, the roadmap prioritises cost efficiency, operational excellence, and the conversion of gas resources into bankable reserves, while strengthening supply to power generation, CNG, LPG, Mini-LNG, and major industrial users. 

    He reaffirmed NNPC’s commitment to collaboration with industry stakeholders and investors in implementing the Gas Master Plan.

    Sign up for our free Daily newsletter

    We'll be in your inbox every morning Monday-Saturday with top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur.

    Related Posts

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest

    Africa’s leading gold producer proposes levy reduction to ease transition to higher royalties

    Ghana’s finance minister has increased cutting a mining levy by two percentage points in an effort to secure industry support for a planned overhaul...

    Singapore energy company discovers 950-million-barrel oil reservoir in West Africa’s Sèmè field

    A major offshore breakthrough by a Singapore-based energy firm is reshaping prospects for West Africa’s Sèmè basin after drilling results confirmed the presence of...

    US confirms deployment of limited military personnel to Nigeria

    The United States has confirmed that a small number of its troops are currently operating in Nigeria, marking the first public acknowledgement of American...

    Nigeria’s fintech sector expanded by 70% in 2025 – CBN

    Nigeria’s financial technology industry recorded a strong 70% growth in 2025 despite a difficult global economic climate, according to a new report released by...

    Nigeria to partner global allies on clean energy – Tinubu

    President Bola Tinubu has said Nigeria is ready to work closely with African countries, international partners, and the private sector to deliver cleaner, affordable,...