NNPC Gas Marketing Limited (NGML) has partnered with A4E Energy to construct a significant 100 million standard cubic feet per day (mmscf/d) natural gas distribution facility in Ajaokuta, Kogi State. The agreement marks a crucial step forward in boosting Nigeria’s domestic gas utilisation and its broader energy goals.
The proposed gas distribution facility, also known as a city-gate, will play a pivotal role in delivering natural gas to various industries in the Ajaokuta area. The infrastructure will supply gas to domestic LNG (liquefied natural gas) facilities, CNG (compressed natural gas) compression plants, and other industries that rely on gas for their operations. This move is expected to significantly enhance local energy supply, reduce reliance on imported fuel sources, and contribute to Nigeria’s gas-powered industrialisation efforts.
In line with this development, NGML has also signed a 10 year Gas Sales and Purchase Agreement (GSPA) with A4E Energy. Under the terms of the agreement, NGML will supply 5mmscf/d of natural gas to A4E’s CNG compression facility and its CNG dispensing stations. This supply will not only support the expansion of CNG infrastructure but will also facilitate the transition of Nigeria’s transportation sector to cleaner fuel alternatives, in keeping with global trends towards decarbonisation.
These initiatives align with the Federal Government’s “Decade of Gas” and “Presidential CNG” initiatives, which prioritise natural gas as a key driver of Nigeria’s industrialisation and transportation sectors. The government’s strategic focus on gas is aimed at leveraging Nigeria’s vast gas reserves to stimulate economic growth, reduce emissions, and enhance energy security.
NGML, the country’s largest downstream gas marketing and distribution company, continues to lead efforts to expand Nigeria’s domestic gas market. Its partnership with A4E Energy, a fully indigenous company active in the downstream and midstream gas and renewable energy sectors, exemplifies a concerted push to harness the country’s abundant natural gas resources. By working together, both companies aim to provide sustainable energy solutions that benefit Nigerian industries and citizens alike.
As Nigeria seeks to capitalise on its natural gas wealth, this project represents a substantial investment in the nation’s future energy infrastructure, helping to meet growing domestic demand while also advancing cleaner energy solutions across the economy. The facility is expected to not only bolster local industries but also pave the way for the country’s shift towards greener energy sources.