Dangote, NNPC Seal Strategic Gas Agreements to Aid African Conglomerate’s Expansion 

Peter Uzoho and Sunday Ehigiator

Three subsidiaries of Dangote Industries Limited – Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc – have scaled up their Gas Sales and Purchase Agreements (GSPAs) with subsidiaries of Nigerian National Petroleum Company Limited (NNPC Ltd), Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The deal is geared towards meeting the energy demands of the ongoing expansion projects of the three Dangote subsidiaries, according to a statement by Dangote Group.

The statement said the up-scaled supply agreements will help to drive the conglomerate’s Vision 2030, resulting in increased output, better and cleaner energy supply, as well as support ongoing expansion projects.

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

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.

Speaking at the signing ceremony, Bird said the agreement demonstrated the refinery’s bold steps to expand capacity.

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

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

The agreement guarantees the gas required to support the drive towards Compressed Natural Gas (CNG) adoption as Autogas, and meet the increasing gas demand as production capacities in Nigeria are expanded.

The cement company added that the agreement also promoted the adoption of cleaner fuel for both Autogas, through CNG, and gas to support increased production output.

For Dangote Fertiliser FZE, it is anticipated that the agreement will support the company’s fertiliser capacity expansion projects, given that fertiliser is a product of natural gas.

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

Ekpo 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 stated that the plan’s strong focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligned 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.

In his address, Group Chief Executive Officer, NNPC Ltd, Bayo Ojulari, described 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 said with about 210 trillion cubic feet (Tcf) of proven gas reserves and an upside potential of up to 600 Tcf, Nigeria possessed 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 stated, “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 explained that the plan prioritised cost optimisation, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves, while strengthening gas supply to power generation, CNG, Liquefied Petroleum Gas (LPG), Mini-Liquefied Natural Gas (LNG), and critical industrial off-takers.

Reaffirming his personal commitment as chief sponsor of the initiative, the NNPC Ltd GCEO stressed that the company had adopted a more collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders, partners, and investors.