Dangote, NNPCL Seal Gas Supply Deal
The Dangote Group and the Nigerian National Petroleum Company Limited (NNPCL) have sealed a gas supply agreement aimed at boosting domestic gas utilisation and supporting industrial production across Nigeria.
According to The Nation, the deal is expected to enhance the availability of natural gas for key facilities operated by the Dangote Group, particularly in the cement, fertiliser, and petrochemical sectors, while also strengthening NNPCL’s role in expanding the country’s gas-to-industry value chain.
Details of the Agreement
Under the partnership, NNPCL will supply natural gas to Dangote’s industrial plants to ensure stable and sustainable energy for production, reducing reliance on more expensive and environmentally harmful fuel alternatives.
Officials familiar with the deal said the agreement covers long-term supply arrangements designed to guarantee price stability and consistent delivery, which are critical for large-scale manufacturing operations.
Boost for Nigeria’s Gas Economy
The deal aligns with the Federal Government’s “Decade of Gas” initiative, which seeks to position Nigeria as a major gas-based industrial hub in Africa by promoting domestic consumption and export opportunities.
Energy analysts say the partnership could help lower production costs, improve competitiveness of Nigerian-made products, and stimulate job creation across the industrial value chain.
Industry Reactions
Stakeholders in the energy and manufacturing sectors welcomed the development, describing it as a positive signal to investors and a step toward addressing long-standing challenges in gas supply infrastructure.
“This kind of collaboration is what Nigeria needs to fully harness its gas potential for economic growth,” an industry expert said.
What It Means for Power and Industry
With gas remaining a critical feedstock for power generation and industrial processes, the agreement is expected to contribute to improved energy security and reduce disruptions caused by supply shortages.
Looking Ahead
Both parties are expected to commence phased implementation of the agreement, with infrastructure upgrades and monitoring mechanisms put in place to ensure efficient gas delivery and compliance with regulatory standards.
Source: The Nation