Dangote, NNPC Sign Landmark Gas Agreements to Boost Industrial Expansion

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In a significant move to boost its capacity expansion drive, Dangote Industries Limited and the Nigerian National Petroleum Company (NNPC) Limited have signed new Gas Sales and Purchase Agreements (GSPA).

The deals, finalized over the weekend at the unveiling of the NNPC Gas Master Plan (NGMP) 2026 in Abuja, are designed to scale up gas supply to three largest industrial subsidiaries of Dangote Industries Limited – Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc.

The deal is between the three Dangote subsidiaries and two NNPC subsidiaries -Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company.

The GSPA has a strategic impact on the three Dangote Industries Limited subsidiaries. For the Petroleum refinery, the agreement secures long-term feedstock and power generation fuel to support the refinery’s capacity expansion. For the fertilizer, it guarantees the primary raw material (natural gas) needed to increase production of urea and other fertilizers, while for the Dangote Cement, it supports the transition to cleaner energy and the adoption of Compressed Natural Gas (CNG) as Autogas for their logistics fleet.

A statement released by the Dangote Group said these agreements will help drive the company’s “Vision 2030,” which focuses on self-sufficiency, increased industrial output, and a shift toward cleaner energy sources.

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

Bird stated during the signing ceremony that the arrangement reflected the refinery’s bold initiatives to increase capacity.

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According to him, the agreements are a major milestone in the expansion drive, as well as a proactive effort to secure significant energy requirements for the anticipated rise in production capacity.

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

Pathak stated that the arrangement enabled DCP’s strategic objectives.

The deal assures the gas needed to support the drive toward Compressed Natural Gas (CNG) adoption as Autogas, as well as to satisfy rising gas demand as Nigeria’s production capacity expands.

It also stated that the deal supported the use of cleaner fuels for both Autogas (via CNG) and gas to enable greater manufacturing output.

Given that fertilizer is a natural gas product, Dangote Fertiliser FZE expects the deal to help the company’s fertiliser capacity growth efforts.

National Gas Master Plan 2026, which is an evolution of the original 2008 Gas Master Plan, sets framework for increasing natural gas production, with focus on use for domestic industrialisation rather than just exporting Liquefied Natural Gas (LNG) abroad.

Speaking at the event, Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the Gas Master Plan as a purposeful shift from policy formulation to disciplined execution, based on commercial viability and integrated sector-wide coordination.

The minister said the plan aligns 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.

Ekpo asserted that the plan would help achieve national gas production targets of 10 billion cubic feet (bcf) per day by 2027 and 12bcf per day by 2030.

“Without doubt, the Plan provides the execution architecture to achieve our gas production targets of 10bcf/day by 2027 and 12bcf/day by 2030, with strong emphasis on domestic utilization,” the minister stated.

In his address, Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari, expressed optimism that the NNPC Gas Master Plan 2026 would help to exceed the targets for gas production in 2027 and 2030 and also attract billions of dollars in investments across the oil and gas sector value chain.

“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,” Ojulari stated.

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Victor EZEJA

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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.