PENGASSAN halts gas supply to Dangote refinery after mass layoffs

Nigeria’s oil union ordered the suspension of gas and crude deliveries to Dangote refinery following the dismissal of hundreds of local workers, escalating an industrial dispute with potential supply impacts.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Nigeria’s oil and gas union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has cut off natural gas supply to the Dangote refinery, one of the continent’s largest refining facilities. The move follows the mass termination of Nigerian workers, who were reportedly replaced by foreign nationals.

In a directive dated September 26, PENGASSAN instructed the immediate closure of crude and gas supply valves and the suspension of all loading operations bound for the refinery. The union accused Dangote Petroleum Refinery of using “propaganda” rather than engaging in discussions over the dismissal of unionised staff. PENGASSAN General Secretary Lumumba Okugbawa ordered all union chapters in oil companies to enforce the shutdown without delay.

Strategic disruption amid growing pressure

The action comes as the $20bn refinery faces mounting supply issues, exacerbated by adverse foreign exchange conditions. Dangote has announced that, starting September 28, it will stop selling petrol in naira, further straining fuel prices and the national currency. The company has not officially responded to the union directive.

The delivery halt could disrupt a significant portion of the refinery’s operations, which depend on steady crude and gas inflows to maintain production lines. PENGASSAN stated that the dismissal of Nigerian workers was a direct violation of labour rights and criticised the increasing reliance on foreign labour.

Potential impact on domestic distribution

Located near Lagos, the refinery had been ramping up output to meet domestic fuel demand. A supply interruption could destabilise Nigeria’s petroleum logistics chain, as the country remains reliant on refined fuel imports despite local capacity expansion. The union has instructed its representatives to monitor the directive’s enforcement and report regularly.

The dispute highlights growing tensions between industrial operators and labour groups in a sector where economic and social stakes remain closely linked. Nigeria continues to depend on refined product imports, even as facilities like Dangote ramp up production.

The US group has finalised operations at the Begonia field, marking its first offshore deepwater intervention in Angola’s Block 17/06, located 150 kilometres off the coast.
Prolonged attacks on fuel convoys have depleted stocks, destabilised power generation and disrupted economic activity in Bamako and surrounding regions.
Nigerian group Dangote has reduced crude supply to its refinery, citing a strategic adjustment to high oil prices and denying any technical failure.
Reliance Industries reported a 9.67% increase in net profit in the second quarter of fiscal year 2025–2026, driven by recovering petrochemical margins and continued growth in its retail and telecom operations.
An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The European Commission imposes new rules requiring proof of refined crude origin and excludes the use of mass-balancing to circumvent the Russian oil ban.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
A ruling by Namibia's High Court upheld the media regulator’s decision that the state broadcaster NBC failed to ensure balance in its coverage of ReconAfrica’s oil operations.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.
The United Kingdom targets two Russian oil majors, Asian ports and dozens of vessels in a new wave of sanctions aimed at disrupting Moscow's hydrocarbon exports.
Major global oil traders anticipate a continued decline in Brent prices, citing the fading geopolitical premium and rising supply, particularly from non-OPEC producers.
Canadian company Petro-Victory Energy Corp. has secured a $300,000 unsecured loan at a 14% annual rate, including 600,000 warrants granted to a lender connected to its board of directors.
Cenovus Energy has purchased over 21.7 million common shares of MEG Energy, representing 8.5% of its capital, as part of its ongoing acquisition strategy in Canada.
In September 2025, French road fuel consumption rose by 3%, driven by a rebound in unleaded fuels, while overall energy petroleum product consumption fell by 1.8% year-on-year.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.