Dangote Subsidiaries Sign Gas Agreements With NNPC To Boost Production
By ESTHER McWILLIS-IKHIDE
Strategic Gas Partnerships
THREE subsidiaries of Dangote Industries Limited have entered into Gas Sales and Purchase Agreements (GSPA) with subsidiaries of the Nigerian National Petroleum Company Limited (NNPC Ltd), in a move expected to strengthen gas supply for industrial expansion and cleaner energy use.
The agreements were signed between Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc, and NNPC subsidiaries—Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC)—at a ceremony held in Abuja.
Supporting Vision 2030
Speaking at the event, Chief Executive Officer of Dangote Petroleum Refinery, David Bird, said the agreements would play a critical role in advancing Dangote Industries’ Vision 2030, particularly through increased output, improved energy efficiency, and cleaner fuel alternatives.
According to Bird, the agreements represent a proactive effort to secure the significant energy volumes required to support the refinery’s anticipated capacity expansion. He described the deals as a major milestone in the refinery’s growth strategy, noting that reliable gas supply is essential for stable operations and future scalability.
Cement and Fertiliser Expansion
Group Managing Director of Dangote Cement Plc, Mr. Arvid Pathak, said the agreements would enable the company to meet rising energy demand as production capacity expands across Nigeria.
He explained that guaranteed gas supply would also support the company’s transition towards Compressed Natural Gas (CNG) adoption under its Autogas initiative, in line with global efforts to reduce carbon emissions and reliance on dirtier fuels.
On his part, Mr. Mustapha Matawalle, who signed on behalf of Dangote Fertiliser FZE, said the agreement was critical to the company’s fertiliser expansion plans, stressing that natural gas remains the primary feedstock for fertiliser production.
Government Perspective
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreements as aligned with Nigeria’s Gas Master Plan, which he said marked a shift from policy formulation to disciplined execution.
He noted that Nigeria’s challenge was not a lack of gas resources but the ability to translate those resources into dependable supply, infrastructure development, and economic value.
NNPC’s Gas Vision
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the Gas Master Plan 2026 provides a clear execution-driven roadmap to unlock Nigeria’s gas potential.
He stated that with about 210 trillion cubic feet (Tcf) of proven gas reserves and an estimated upside of 600 Tcf, Nigeria remains well-positioned to emerge as a globally competitive gas hub under the framework of the Petroleum Industry Act.
