KEY POINTS
- NNPCL and Zuid Energies will develop a 40 MMSCFD LNG plant and 6 MMSCFD CNG plant in Kogi to expand domestic gas access.
- The project is part of Nigeria’s broader strategy to replace fossil fuels with cleaner gas-based energy across transport, cooking, and power sectors.
- The partnership strengthens ongoing government efforts, including the “10-for-10” CNG campaign and the construction of multiple mini-LNG plants nationwide.
The Nigerian National Petroleum Company Limited, NNPCL, through its subsidiary NNPC Gas Marketing Limited (NGML), has announced a strategic joint venture with Zuid Energies Limited to develop major gas infrastructure in Ajaokuta, Kogi State.
This includes the construction of a 6 million standard cubic feet per day (MMSCFD) Compressed Natural Gas (CNG) plant and a 40 MMSCFD Liquefied Natural Gas (LNG) facility.
The landmark agreement, signed on the sidelines of the Mobility-CNG Stakeholders’ Workshop in Abuja, aligns with Nigeria’s drive to expand its domestic gas utilization, reduce carbon emissions, and improve energy access for underserved communities. The event was themed “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector.”
“This partnership underscores NGML’s ongoing commitment to leveraging private sector expertise to scale up virtual pipeline solutions that will deliver gas to off-grid locations and remote users,” NNPCL said in its statement on Friday, July 25, 2025.
The initiative is part of a wider national strategy to harness Nigeria’s vast gas reserves
NNPCL emphasized that the collaboration is designed to deepen the gas market, support mobility infrastructure through CNG usage, and stimulate local investment in clean energy. According to the company, these plants will help reduce Nigeria’s reliance on imported fuel products and will offer reliable alternatives to diesel and petrol, particularly in transportation and power generation.
This development complements earlier efforts by NNPCL to build multiple mini-LNG plants in Ajaokuta. In January 2025, the company unveiled five LNG facilities with a combined daily production capacity of 97 MMSCFD. These included:
- NNPC Prime LNG
- NGML/Gasnexus LNG
- BUA LNG
- Highland LNG
- LNG Arete
“This unprecedented partnership between NNPCL and private investors represents a strategic leap toward energy sufficiency, off-grid industrial support, and carbon emission reduction in the country,” a statement from former NNPCL spokesperson, Olufemi Soneye, said at the time.
The five projects are strategically located to tap into Kogi’s abundant natural gas deposits and benefit from proximity to the Ajaokuta-Obajana gas pipeline. Once operational, they are expected to significantly boost LNG and CNG supply for industrial, domestic, and vehicular use.
The federal government’s “10-for-10 CNG Campaign” — launched earlier this year — aims to convert at least 10,000 commercial vehicles to run on CNG within 10 weeks, further emphasizing the urgent push toward gas-driven mobility.
The collaboration with Zuid Energies marks another milestone in this transition and represents a critical move towards decentralizing gas distribution in Nigeria. By promoting gas-based solutions, the government aims to curb energy poverty, reduce emissions from fossil fuels, and expand industrialization opportunities outside of urban centers.
NGML reiterated that the partnership will strengthen energy accessibility while unlocking new economic opportunities across Kogi State and beyond.
“We are committed to creating a future where every Nigerian, regardless of location, can access clean and affordable energy,” the statement concluded.
The initiative is expected to create hundreds of jobs, enhance local technical expertise, and support Nigeria’s ambitious energy transition goals under the Decade of Gas initiative.
