Dangote, NNPC Sign Strategic Gas Supply Deals

Three major subsidiaries of Dangote Industries Limited have expanded their Gas Sales and Purchase Agreements with NNPC Limited subsidiaries to secure long term gas supply for new capacity and cleaner energy use.

The updated agreements cover Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc. They were signed with Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited to support the group’s Vision 2030 expansion projects.

What the gas agreements are meant to achieve

Dangote’s businesses say the scaled up supply arrangements are designed to lock in the volume of gas they will need as they expand output across refining, fertiliser production, and cement manufacturing. The expected impact is higher production capacity, more reliable energy supply, and greater use of cleaner fuel compared with heavier alternatives.

For the fertiliser business, the gas supply is especially critical because natural gas is a key input for producing fertiliser.

Signed at the launch of the Gas Master Plan 2026

The deal signings took place during the unveiling of the NNPC Gas Master Plan 2026 at NNPC Towers.

At the event, David Bird signed for the refinery, Arvid Pathak signed for the cement company, and Mustapha Matawalle signed for the fertiliser company.

Dangote’s message: secure gas now, grow output next

Speaking at the ceremony, Bird said the expanded agreements reflect a deliberate move to secure the refinery’s growing energy needs as it increases production capacity.

Pathak said the agreement supports Dangote Cement’s strategy, including cleaner fuel adoption and rising gas demand as industrial output expands. He also linked the deal to wider use of CNG for transport fuel and gas use for higher plant output.

Government and NNPC: from plans to delivery

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the Gas Master Plan as a shift from policy to execution, focused on turning Nigeria’s gas resources into reliable supply, industrial growth, and measurable economic outcomes. 

He added that the plan aligns with the Decade of Gas Initiative and positions gas as central to energy security and industrialisation.

NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, said the plan targets national gas production of 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030. 

He also said it aims to catalyse $60 billion in new investments by 2030 and strengthen supply to power generation, CNG/Autogas, LPG, mini LNG, and major industrial users. He referenced Nigeria’s proven gas reserves and the enabling role of the Petroleum Industry Act, while stressing a more investor focused, collaborative approach.

Why this matters

This is a straightforward trade off: Dangote gets longer term gas certainty for expansion, while NNPC pushes a national plan built around higher production, stronger infrastructure, and more industrial off takers. 

If execution matches the targets, the immediate winners should be heavy industry and gas dependent manufacturing, with broader knock on effects for power, transport fuel alternatives, and investment flows.