NNPC Gas Marketing Limited, a subsidiary of the Nigerian National Petroleum Company Limited is making a strategic move to expand Nigeria’s Compressed Natural Gas infrastructure by acquiring a 5.2 million standard cubic feet per day CNG compression and refueling facility from Gas Network Services Limited.
A recent merger and acquisition notice from the Federal Competition and Consumer Protection Commission signals a major boost for Nigeria’s compressed natural gas infrastructure and access to cleaner energy.
Gas Network Services Limited, which operates the facility, delivers compressed natural gas to industrial and commercial customers through mobile tube trailers, offering virtual pipeline solutions.
The facility also features dispensing points for refueling natural gas vehicles, primarily serving clients beyond the reach of traditional pipeline networks.
Through this acquisition, NGML seeks to strengthen its position in the marketing and distribution of natural gas across Nigeria.
The transaction is expected to boost the CNG market by expanding infrastructure capacity, thereby making CNG more accessible and affordable, especially for the transport and commercial sectors.
The acquisition also aligns with the goals of the Presidential Compressed Natural Gas Initiative launched in August 2023.
The P-CNG Initiative, launched in August 2023, was introduced to mitigate the impact of fuel subsidy removal and reduce energy costs nationwide by promoting CNG as a cleaner, more affordable alternative to traditional fuels.
NGML’s acquisition is viewed as a strategic step to accelerate the deployment of CNG infrastructure across the country, aligning with national efforts to create a more sustainable and cost-effective energy landscape.
The FCCPC raised concerns about the potential competitive impact of the deal on the CNG market but emphasized that the project is likely to benefit consumers by increasing access to cleaner energy.
The $27.3 million gas plant project, backed by the Presidential Compressed Natural Gas Initiative and LNG Arete Ltd., aims to expand CNG infrastructure in Northern Nigeria, supporting the country’s efforts to boost its CNG capacity.
The project is designed to tackle the persistent energy challenges in Northern Nigeria, particularly in the transportation and industrial sectors, which have long faced issues with unreliable and expensive energy.
By expanding CNG infrastructure, the initiative aims to provide a more dependable and affordable energy solution for these sectors.
