NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPCL) Limited, has entered into a joint venture agreement with Zuid Energies Limited for the construction of a compressed natural gas (CNG) plant and a liquefied natural gas (LNG) facility in Ajaokuta, Kogi state.
The partnership was announced during the Mobility-CNG stakeholders workshop held in Abuja, which focused on aligning industry players around the federal government’s push for CNG adoption.
Themed “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector,” the event gathered regulators and downstream operators to explore commercial opportunities and energy transition solutions.
Under the agreement, the partners will develop a CNG facility with a daily capacity of six million standard cubic feet (mmscfd) and an LNG plant designed to produce 40 million standard cubic feet per day (mmscfd).
Advertisement
In a statement, NNPC said the development “demonstrates NGML’s commitment to leveraging private sector partnerships to deliver innovative virtual pipeline solutions that enable efficient gas supply to off-grid and underserved areas”.
This latest deal builds on a series of gas infrastructure projects recently initiated in Ajaokuta.
In January, NNPC commenced the construction of five mini-LNG plants in the area, targeting a combined output of 97 million standard cubic feet of gas per day.
Advertisement
The projects are the prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete.
