NNPC Gas Limited set to acquire 5.2m standard cubic feet per day CNG facility

NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), is set to acquire a 5.2 million standard cubic feet per day Compressed Natural Gas (CNG) compression and refuelling facility from Gas Network Services Limited (GNSL).This development, disclosed through a merger and acquisition notice issued by the Federal Competition and Consumer Protection Commission (FCCPC), represents a major step towards broadening Nigeria’s CNG infrastructure and improving access to cleaner energy alternatives.

GNSL, the current operator of the facility, specialises in providing virtual pipeline solutions by compressing natural gas and transporting it to industrial and commercial clients via mobile tube trailers.The facility also features dispensing points for refuelling natural gas vehicles (NGVs), catering mainly to customers located beyond the reach of traditional pipeline networks.Through the acquisition, NGML aims to strengthen its position in the marketing and distribution of natural gas across the country.



The transaction is expected to expand CNG infrastructure capacity, making compressed natural gas more accessible and affordable, particularly for the transport and commercial sectors.The move fits closely with the goals of the Presidential Compressed Natural Gas Initiative (P-CNG Initiative), launched in August 2023.The initiative was introduced to help cushion the effects of fuel subsidy removal and to drive down energy costs by encouraging the widespread adoption of CNG as a cleaner and more economical alternative to petrol and diesel.

NGML’s planned acquisition is seen as a strategic advance in the push to accelerate the rollout of CNG infrastructure nationwide, supporting broader national efforts to develop a more sustainable and cost-effective energy landscape.The FCCPC observed that while the transaction could significantly influence competitive dynamics within the CNG market, it ultimately promises to deliver consumer benefits by broadening access to cleaner energy options.In a related effort to expand the country’s CNG capacity, the Presidential Compressed Natural Gas Initiative (P-CNGi) and LNG Arete Ltd.

recently signed a key Memorandum of Understanding (MoU) for a $27.3 million gas plant project aimed at boosting CNG infrastructure across Northern Nigeria.The project is designed to tackle the region’s longstanding energy challenges, particularly in the transportation and industrial sectors, which have long faced difficulties accessing reliable and affordable energy sources.

President Bola Tinubu established the P-CNGi in August 2023 to revolutionise the country’s transportation sector, with a target of deploying more than 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing petrol-powered vehicles.The initiative is also expected to stimulate local manufacturing and assembly of conversion kits, creating new job opportunities and supporting broader economic growth.The post NNPC Gas Limited set to acquire 5.

2m standard cubic feet per day CNG facility appeared first on Nigerian NewsDirect..