Monday, 28 October 2024 04:45

Dangote Cement turns to CNG, abandoning diesel produced by sister company

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In a major pivot, Dangote Cement Plc announced it has invested over $280 million in compressed natural gas (CNG) infrastructure, vehicles, and technology, effectively shifting away from diesel, a product that its sister company, Dangote Oil Refinery, refines. The company said this transition is part of its long-term strategy to power its fleet with 100 percent CNG.

Arvind Pathak, Group Managing Director of Dangote Cement, explained that the investment aligns with Dangote’s clean energy goals and its commitment to reducing carbon emissions. Speaking at a recent event, Pathak stated, “By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG.” To achieve this goal, Dangote Cement has received its first 1,500 mono-fuel CNG trucks and expects another 1,600 by year-end, bringing the total to 3,100 vehicles. This transition will be supported by new CNG fueling infrastructure, including stations at Obajana and Ibese.

The move has caught attention as Dangote Industries, which owns Africa’s largest oil refinery, has opted for CNG over diesel for its cement transportation fleet. In doing so, it demonstrates a firm commitment to a low-carbon economy despite the country’s longstanding reliance on diesel fuel.

President Bola Tinubu emphasized the importance of natural gas in Nigeria’s energy future, calling CNG “an economic necessity” in the transportation sector. He pointed out that adopting CNG aligns with Nigeria’s vast natural gas resources and the country’s goal to meet net-zero emissions by 2060. Aliko Dangote, Chairman of Dangote Group, added that his company’s shift to CNG supports Nigeria’s climate commitments under the Paris Agreement and furthers the government’s energy independence goals.

Dangote’s early adoption of CNG infrastructure has made it Nigeria’s largest operator of CNG-powered trucks, marking a significant move away from diesel and positioning the company as a leader in cleaner energy practices across Africa.

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