By Kamal Yalwa August 2, 2025
The Nigerian National Petroleum Company (NNPC) Gas Marketing Limited (NGML), a subsidiary of NNPC Limited, has signed a joint venture agreement with Zuid Energies Limited to construct compressed natural gas (CNG) and liquefied natural gas (LNG) plants in Ajaokuta, Kogi State.
The announcement was made during the Mobility-CNG Stakeholders Workshop in Abuja, themed “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector.” The event brought together regulators and downstream operators to explore collaborative solutions for Nigeria’s energy transition and expansion of commercial gas opportunities.
Under the agreement, the new gas infrastructure will include:
- A CNG plant with a production capacity of 6 million standard cubic feet per day (mmscfd)
- An LNG facility capable of producing 40 mmscfd
According to a statement from the NNPC, the initiative underscores NGML’s commitment to “leveraging private sector partnerships to deliver innovative virtual pipeline solutions for efficient gas supply to off-grid and underserved areas.”
The new project adds to a growing list of gas infrastructure developments in Ajaokuta. Earlier in January, NNPC began constructing five mini-LNG plants in the area with a combined target output of 97 mmscfd. These include:
- Prime LNG
- NGML/Gasnexus LNG
- BUA LNG
- Highland LNG
- LNG Arete
The Federal Government continues to prioritize CNG as part of its clean energy and mobility agenda, in line with its national gas expansion program.
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