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Business & Economy

Dangote, NNPCL seal gas supply deal

The FrontierThe FrontierFebruary 2, 2026 1203 Minutes read0

An enhanced gas supply deal that will ensure adequate supply to meet ongoing expansion projects by Dangote Group has been signed by the Dangote Industries Limited (DIL) and the Nigerian National Petroleum Company Limited (NNPCL).

The deal saw three subsidiaries of DIL – Dangote Petroleum Refinery, Dangote Fertiliser Plant and Dangote Cement Plc – scaling up their Gas Sales and Purchase Agreements (GSPA) with two subsidiaries of the NNPC- Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The upscaled supply agreement is expected to support Dangote Group’s Vision 2030, resulting in increased output, better and cleaner energy supply, reports The Nation.

The agreements were signed at the unveiling of the NNPC Gas Master Plan (GMP) 2026, tagged NGMP 2026 held at the NNPC Towers at the weekend in Abuja.

Managing Director, Dangote Petroleum Refinery, Mr. David Bird, signed on behalf of the refinery, while the Group Managing Director of Dangote Cement Plc, Mr. Arvid Pathak, signed on behalf of the cement company. Mr. Mustapha Matawalle signed on behalf of Dangote Fertiliser FZE.

Bird said that the agreement demonstrated the refinery’s bold steps to expand its capacity.

According to him, the agreements marked a critical milestone in the expansion drive as well as a proactive measure to lock in vast energy requirements for the anticipated increase in its production capacity.

Pathak described the agreement as an enabler of DCP’s strategic objectives.

He outlined that the agreement guarantees the gas required to support the drive towards CNG adoption as auto gas and to meet the increasing gas demand as local production capacities are expanded.

He added that the partnership also promotes the adoption of cleaner fuel for both auto gas through CNG and gas to support increased production output.

Dangote Fertiliser FZE stated that the agreement would support its fertiliser capacity expansion projects, given that fertiliser is a product of natural gas.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the GMP Master Plan as a deliberate pivot from policy articulation to disciplined execution, anchored on commercial viability and integrated sector-wide coordination.

He said: “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.

“Nigeria is fundamentally a gas Nation. With one of the largest proven gas reserves in Africa, our challenge has never been potential, but translation: translating resources into reliable supply, infrastructure into value, and policy into measurable outcomes for our economy and our people. The Gas Master Plan speaks directly to this challenge”.

Ekpo further noted that the plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns seamlessly with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security, industrialisation, and just energy transition.

NNPC/L GCEO) Bashir Ojulari, described the NNPC Gas Master Plan 2026 as a bold, effective execution-anchored roadmap designed to unlock Nigeria’s immense gas potential and elevate the country into a globally competitive gas hub.

Ojulari noted that with about 210 trillion cubic feet (Tcf) of proven gas reserves and an upside potential of up to 600 Tcf, Nigeria possesses one of the most consequential hydrocarbon basins in the world; one reinforced by the Petroleum Industry Act (PIA) and the Federal Government’s gas-centric energy transition agenda.

He said: “The Plan is structured not just to deliver – but 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 catalysing over 60 billion dollars in new investments across the oil and gas value chain by 2030”.

He explained that the plan prioritises cost optimisation, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves, while strengthening gas supply to power generation, CNG, LPG, Mini-LNG, and critical industrial off-takers.

He reaffirmed his personal commitment as chief sponsor of the initiative, stressing that the company has adopted a more collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders, partners, and investors.

 

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