The NNPC Gas Marketing Limited (NGML) says it has entered into a joint venture agreement with Zuid Energies Limited for the development of a 6 million standard cubic feet per day Capacity Compressed Natural Gas (CNG) Plant and a 40 MMSCFD (Million Standard Cubic Feet per Day) LNG facility in Ajaokuta, Kogi State.
NNPCL disclosed this in a statement on Friday, stressing that the development is part of its strategic drive to expand gas marketing and distribution across Nigeria.
The signing ceremony took place on the sidelines of the Mobility-CNG Stakeholders Workshop in Abuja, with the theme: “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector.”
Insight on Development Drive
- According to NNPCL, the development demonstrates NGML’s commitment to leveraging private sector partnerships.
- It assured that the partnership will deliver innovative Virtual Pipeline Solutions that enable efficient gas supply to off-grid and underserved areas.
- The event reportedly brought together key players and regulators in the downstream value chain to deepen industry alignment, discuss commercial opportunities, and present solutions related to the Presidential CNG Initiative.
What You Should Know
Nairametrics previously reported on January 31, 2025, that the Nigeria National Petroleum Company Limited (NNPCL) had disclosed that five mini-LNG plants launched for construction in Ajaokuta, Kogi State, have a combined capacity of producing 97 million standard cubic feet of gas per day.
NNPCL added that it was partnering with various private companies to build the LNG plants, which are expected to boost local gas supply for cooking, mobility, and power generation.
The national oil company held the groundbreaking ceremony in Ajaokuta, where it launched the construction of the plants.
According to a statement issued by NNPCL’s former Chief Corporate Communications Officer, Olufemi Soneye, the five plants include:
- NNPC Prime LNG
- NGML/Gasnexus LNG
- BUA LNG
- Highland LNG
- LNG Arete
“This unprecedented partnership between NNPC Ltd. and private investors represents a strategic leap toward energy sufficiency, off-grid industrial support, and carbon emission reduction in the country,” the statement had read.
The plants are expected to tap into the rich natural gas deposits in Kogi State and the Ajaokuta-Obajana pipeline.
They are expected to boost the production and availability of LNG for power plants, cooking gas, and Compressed Natural Gas (CNG) for vehicles.
Earlier this year, the federal government launched a 10-for-10 Campaign to convert 10,000 commercial vehicles to run on CNG within 10 weeks.
