Dangote Cement Plc, Africa’s leading cement producer owned by Aliko Dangote, has entered a strategic partnership with Tetracore Energy to transform Nigeria’s Auto Compressed Natural Gas (CNG) supply chain. This collaboration reflects Dangote Cement’s dedication to cleaner energy solutions and aligns with its logistics expansion goals.
Key Highlights:
•CNG Demand Growth: The partnership addresses the rising demand for Auto CNG fueled by Dangote’s extensive fleet and Nigeria’s growing Auto CNG user base.
•Federal Initiative Alignment: The venture supports President Bola Ahmed Tinubu’s Presidential CNG Initiative (Pi-CNG), aiming to cut reliance on traditional fuels and drive gas-based economic growth.
•Supply Agreement: Tetracore Energy will provide up to 400,000 standard cubic meters (SCM) of CNG to Dangote Cement, bolstering logistics operations while advancing Nigeria’s energy transition goals.
Innovative Supply Chain Solutions:
Tetracore Energy plans to deploy Mobile Refilling Units and construct strategically located mother stations across Nigeria, ensuring a steady CNG supply. This guarantees reliability for Dangote’s fleet and other CNG users while reinforcing Nigeria’s commitment to sustainable energy.
Dayo Williams, Program Executive at Tetracore, remarked:
“This partnership underscores our commitment to sustainable energy solutions. Together with Dangote Cement, we’re driving the adoption of CNG as a cleaner, more efficient fuel for Nigeria’s extensive logistics network.”
Financial and Operational Growth:
Valued at N8.02 trillion ($4.9 billion), Dangote Cement remains a cornerstone of Nigeria’s industrial sector, reducing import reliance and boosting regional trade with exports to Cameroon, Congo, and Ghana.
•Bond Program: To enhance operations and fund expansions, the company’s board approved a new bond series under its N300 billion ($180.5 million) multi-instrument issuance program.
•Revenue Surge: Dangote Cement reported a 69.1% increase in group revenues in 2024, reaching N2.6 trillion ($1.6 billion), up from N1.5 trillion ($978 million) in 2023. Growth was driven by higher volumes in Nigeria, improved pricing strategies, and favorable currency gains in pan-African operations.
This partnership with Tetracore Energy positions Dangote Cement as a trailblazer in promoting cleaner energy while maintaining its dominance in the African cement industry.
