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Dangote and NNPC Seal Strategic Gas Agreements to Support Expansion Projects

Dangote Industries Limited and the Nigerian National Petroleum Company Limited (NNPC Ltd) have finalised strategic gas supply agreements to support energy needs for the conglomerate’s major expansion projects, the parties said at a signing ceremony held alongside the launch of the NNPC Gas Master Plan (NGMP) 2026 in Abuja.

Under the revised Gas Sales and Purchase Agreements (GSPAs), three Dangote subsidiaries — Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc will receive secured natural gas supplies from Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The agreements are intended to ensure reliable energy access for increased production capacity and broader industrial growth.

The agreements were signed at the NNPC Towers during the unveiling of the NGMP 2026, a framework aimed at mobilising Nigeria’s vast gas resources to meet domestic and industrial energy requirements and advance the federal government’s Decade of Gas Initiative.

Mr. David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, signed on behalf of the refinery and described the deals as a “critical milestone” in securing the energy necessary for planned capacity increases.

The agreements are expected to provide a dependable gas supply that will underpin expanded operations, particularly as the refinery scales up output.

Mr. Arvid Pathak, Group Managing Director of Dangote Cement Plc, said the agreements will support the company’s strategic objectives by enabling increased use of compressed natural gas (CNG) as Autogas and meeting the rising gas demands of its manufacturing processes.

Dangote Fertiliser FZE expects the agreements to facilitate its fertiliser capacity expansion, given the central role of natural gas in fertiliser production.

Speaking at the event, Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the NGMP 2026 as a shift from policy articulation to disciplined, commercially driven execution.

He said the plan is designed to harness Nigeria’s gas potential to enhance supply reliability, infrastructure expansion and market development while supporting energy security and industrialisation goals.

Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd, characterised the master plan as an ambitious roadmap to unlock the country’s extensive gas reserves, estimated at about 210 trillion cubic feet, and elevate Nigeria as a competitive gas hub globally.

He noted that the agreements reflect stronger collaboration between NNPC Ltd and private sector investors.

Analysts say securing long-term gas supply agreements is vital for Nigeria’s industrial growth, given the role of cost-effective and reliable energy in enhancing manufacturing competitiveness and supporting value chains.

The gas sector’s strategic development aligns with broader economic diversification and clean energy transition objectives under the Petroleum Industry Act and federal policy directives.

As implementation of the NGMP 2026 proceeds, strengthened gas-to-industry linkages are expected to contribute to job creation, investment expansion and improved energy security, reinforcing Nigeria’s position in regional energy markets and supporting sustainable growth across the economy.

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Michael Victor

Editor Green Horizon News

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