Nigeria’s Dangote Group has expanded gas supply agreements with units of state-owned oil firm, NNPC Limited, as it seeks to secure fuel for refinery and industrial expansion programmes across the country.
In a statement released on Monday by the Group, Dangote Refinery, Dangote Fertiliser Plant and Dangote Cement Plc said the contracts were signed with Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company at the Nigeria Gas Master Plan 2026 in Abuja.
The companies explained that the agreements are designed to ensure steady gas supply to support ongoing and planned expansion projects.
However, they did not disclose the volumes covered by the contracts.
The deals were announced days after Nigeria formally launched its Gas Master Plan, a policy framework aimed at repositioning gas as a central pillar of the country’s energy and industrial strategy.
Nigeria holds one of Africa’s largest proven gas reserves, but supply constraints, infrastructure gaps and underinvestment have limited domestic utilisation.
The government says the new plan is focused on addressing these challenges.
The expanded agreements with Dangote subsidiaries come as large industrial users continue to rely on gas to power production, lower costs and reduce dependence on liquid fuels.
What the gas master plan aims to fix
Nigeria launched the Gas Master Plan on Friday as part of efforts to stabilise supply, expand infrastructure and attract long term investment into the gas sector.
The plan targets raising national gas production to 10 billion cubic feet per day by 2027 from about 8 billion cubic feet per day currently.
Output is expected to rise further to 12 billion cubic feet per day by 2030.
The plan aims to unlock more than $60 billion in investments across the gas value chain, covering upstream development, processing, transportation and end use infrastructure.
At the launch in Abuja, Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo said the focus has shifted from policy design to implementation.
“The plan shifts from policy drafting to execution, emphasising that Nigeria’s challenge lies in converting its reserves into reliable supply and economic value,” Ekpo said.
Gas has been identified by the government as a transition fuel to support power generation, manufacturing and cleaner energy use, while reducing reliance on diesel and petrol.
NNPC’s role in boosting domestic gas supply
NNPC Limited is expected to play a central role in delivering the targets outlined in the Gas Master Plan, particularly through its gas marketing and infrastructure subsidiaries. NNPC Ltd Group Chief Executive Officer Bashir Bayo Ojulari said the plan is designed to lift national output while improving efficiency and investor confidence.
“The plan aims to boost national gas production, optimise costs and attract new investment while strengthening supply to users,” Ojulari said.
For Dangote Group, access to reliable gas supply is critical to sustaining operations at its 650,000 bdp refinery, fertiliser plant and cement factories, which are among the largest energy consumers in Nigeria.
The refinery, located in Lagos, is expected to rely on gas for power and process heating as it ramps up output of petrol, diesel, aviation fuel and other refined products.
Dangote Fertiliser Plant also depends heavily on gas as feedstock for urea production, while Dangote Cement uses gas to support kiln operations and reduce energy costs.
