Dangote Industries Limited has entered into significant gas supply agreements with the Nigerian National Petroleum Company Limited to meet the energy requirements of three of its major subsidiaries. The deals were formalized during the unveiling of the NNPC Gas Master Plan 2026 at the NNPC Towers in Abuja, marking a strategic move to bolster industrial operations across the Dangote Group.
Expanded Agreements for Key Subsidiaries
According to official statements, the agreements involve expanded gas sales and purchase arrangements with NNPC subsidiaries, specifically Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited. These pacts cover Dangote Refinery, Dangote Cement Plc, and Dangote Fertiliser FZE, building upon existing partnerships to enhance energy security and operational efficiency.
The signing ceremony saw key executives representing each subsidiary. David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, signed on behalf of the refinery operations. Arvind Pathak, Group Managing Director of Dangote Cement Plc, represented the cement business, while Mustapha Matawalle executed the agreement for Dangote Fertiliser FZE.
Strategic Objectives and Vision 2030
These agreements are designed to support Dangote Group's ambitious Vision 2030, which focuses on increasing production capacity, improving access to cleaner energy sources, and sustaining ongoing and future expansion projects. By securing reliable gas supplies, the group aims to drive growth across its diverse industrial portfolio.
During the event, David Bird emphasized that the agreements reflect Dangote Refinery's long-term strategy to expand capacity. He highlighted that securing consistent gas supply represents a critical step toward supporting anticipated production increases and maintaining operational stability.
Benefits Across Different Sectors
For Dangote Cement, the agreements will help meet strategic objectives by guaranteeing gas supply for higher output and supporting the adoption of compressed natural gas as an alternative fuel. This move aligns with broader industry trends toward cleaner energy solutions in manufacturing processes.
In the fertiliser sector, the agreement supports capacity expansion initiatives, as natural gas remains a fundamental raw material in fertiliser production. The enhanced supply arrangements are expected to facilitate increased production volumes and operational efficiency.
NNPC Gas Master Plan 2026 Unveiled
The signing ceremony coincided with the official unveiling of the NNPC Gas Master Plan 2026, described by industry leaders as a transition from policy formulation to practical execution. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), characterized the plan as commercially viable and coordinated across the sector.
Ekpo noted that the plan's focus on supply reliability, infrastructure expansion, market flexibility, and strategic partnerships aligns with the federal government's Decade of Gas initiative. He emphasized that Nigeria's primary challenge lies in transforming its substantial gas resources into tangible economic outcomes and industrial development.
Nigeria's Gas Potential and Production Targets
Bayo Ojulari, NNPC Group Chief Executive Officer, presented the Gas Master Plan 2026 as an execution-focused roadmap designed to unlock Nigeria's gas potential and position the country as a competitive global gas hub. He revealed that Nigeria currently possesses approximately 210 trillion cubic feet of proven gas reserves, with potential to reach 600 trillion cubic feet through continued exploration and development.
The ambitious plan aims to increase gas production to 10 billion cubic feet per day by 2027 and further to 12 billion cubic feet per day by 2030. These targets are expected to attract significant investment into Nigeria's gas sector while supporting industrial growth and energy security across the nation.
Broader Market Context and Projections
In related developments, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has projected sustained declines in petroleum product prices, including petrol, diesel, and liquefied petroleum gas. The agency attributes these expectations to improved product supply and growing competition within the downstream oil and gas sector.
According to regulatory assessments, market forces are operating more efficiently, creating conditions for price stability and enhanced affordability for consumers. These market dynamics complement the strategic gas supply agreements signed between Dangote Group and NNPC, contributing to a more robust energy landscape in Nigeria.
