Dangote's 600km Offshore Gas Pipeline Targets Nigeria's Stranded Energy As Lagos Complex Self-Generates 650MW

Dangote Industries Ltd. is pressing ahead with an offshore gas-gathering pipeline stretching 600 kilometres, a project designed to unlock gas reserves that have sat dormant for years due to a lack of onshore connection infrastructure, while the company's existing Lagos facility already produces enough electricity to power a mid-sized city entirely for its own use.

Stranded Gas Wells Drive Pipeline Ambition

The pipeline project was announced by Devakumar Edwin, Group Vice President for Oil and Gas and Fertiliser at Dangote Industries Ltd., during a tour of the Dangote Petroleum Refinery in Lagos on 18 September, 2026. Edwin described the East-West offshore gas-gathering initiative as a direct response to a structural gap in Nigeria's energy infrastructure: the absence of any means to bring offshore gas discoveries to land. Edwin was candid about the consequences of that gap.

"When we strike a gas well, if it is full of gas, we just cap the well and sit it," he said, underscoring how significant volumes of energy resources have remained commercially inaccessible. The 600-kilometre pipeline would allow offshore gas producers to connect and route their output to onshore processing facilities. Once gas reaches shore, Edwin explained, it can be treated and returned to the original producers or acquired and used directly by Dangote. He confirmed that engineering design for the project has been completed and that construction is expected to begin soon.

A 650MW Power Operation Built Entirely for Internal Use

The scale of Dangote's self-generated electricity underscores how energy-intensive the Lagos complex has become. The refinery alone produces 501 megawatts to sustain its own operations, while the adjoining fertiliser facility generates more than 150 megawatts, bringing the combined total to over 650 megawatts. Edwin said every megawatt produced, including standby capacity, is consumed internally.

Edwin did not rule out entering the commercial power market, acknowledging that the expertise and generation capacity exist to support such a move. He pointed to Dangote's accumulated experience operating gas turbines, gas engines, coal-fired systems and other thermal generation technologies. However, he identified two barriers standing between the company and commercial power supply: inadequate distribution infrastructure and difficulties with revenue collection. "The opportunity is there to generate power and go into it as a business," he said, while making clear those obstacles remain unresolved.

Fertiliser Output Set to Quadruple Across Two Continents

Edwin outlined plans to scale fertiliser production from three million tonnes per year to 12 million tonnes annually. The expansion calls for four additional fertiliser processing trains to be built in Nigeria, alongside separate projects planned for Ethiopia and a second African country that was not named. The company also intends to diversify its fertiliser product line, adding diammonium phosphate and single super phosphate to its existing output.

Edwin tied the expansion to broader demand growth across Nigeria and the African continent, and situated it within a wider corporate philosophy centred on domestic value creation. "We want to take the raw materials from the countries and add value, create employment, add to the GDP," he said.

Refinery Doubling Capacity With Equipment Already Ordered

The Dangote Petroleum Refinery is targeting a doubling of its processing capacity, moving from 700,000 barrels per day to 1.4 million barrels per day. Edwin said the majority of engineering work associated with that expansion has already been completed and that major equipment orders have been placed. He suggested the full capacity increase could be achieved within three years, and possibly sooner. To support the financing of this expansion and reinforce its capital base, Dangote Petroleum Refinery and Petrochemicals is currently in the process of raising approximately 2.15 trillion naira through an initial public offering.

Petrochemicals and Continental Distribution Round Out Vision 2030

Alongside the gas pipeline and fertiliser expansion, Dangote is developing new chemical production capabilities. Projects covering linear alkyl benzene, base oil and expanded polypropylene production are in development as part of the company's broader petroleum and petrochemical programme. On the logistics side, Edwin said the company is building out pipelines and storage infrastructure across Africa with the dual aim of improving fuel distribution efficiency and reducing dependence on road-based transport.

He highlighted the particular benefit for landlocked countries, which face the greatest challenges in accessing petroleum products reliably. Edwin described all of the announced projects as elements of the company's Vision 2030 strategy, a framework he said is oriented toward expanding industrial value addition across the African continent.