PENGASSAN Orders Gas Supply Cut to Dangote Refinery Over Workers’ Dismissal

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has ordered an immediate suspension of gas supply to the $20 billion Dangote Petroleum Refinery, intensifying a standoff over the termination of unionised workers.

In a letter dated September 26, 2025, and signed by General Secretary Lumumba Ighotemu Okugbawa, the union accused the refinery’s management of infringing on workers’ constitutional rights—specifically, the right to freedom of association. According to PENGASSAN, several employees were dismissed after joining the union.

The union alleged that, instead of engaging in meaningful dialogue to resolve the issue, the refinery chose to spread “misinformation and propaganda” to justify what it described as an illegitimate action.

In response, PENGASSAN directed its members across gas-producing and supplying firms—including TotalEnergies, Seplat, Renaissance, Chevron, Oando, Shell Nigeria Gas, and the Nigeria Gas Infrastructure Company (NGIC)—to stop supplying gas to the Dangote Refinery.

“All crude oil supply valves to the refinery must be shut, and any loading operations for vessels en route to the facility must be halted immediately,” the letter instructed. NGIC was specifically tasked with ensuring strict enforcement of the order.

Union branch chairmen were told to report back promptly on their compliance, as PENGASSAN reiterated its core principle: “Injury to one, injury to all.”

The move could significantly disrupt operations at Africa’s largest oil refinery, a project hailed as a transformative force for Nigeria’s downstream petroleum industry.

Commissioned in 2023, the refinery has a processing capacity of 650,000 barrels of crude oil per day. It was designed to curb Nigeria’s reliance on imported fuel and bolster domestic supply stability.

However, the ongoing labour unrest has sparked concerns over industrial relations at the facility and raised questions about adherence to national labour laws.

If PENGASSAN’s directive is fully implemented and prolonged, it may present serious operational challenges for the refinery and further complicate Nigeria’s efforts to ensure energy security.

As of the time of reporting, neither the Dangote Refinery nor government officials had responded publicly to the union’s directive.