NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited, is set to acquire a 5.2 million standard cubic feet per day (mscfd) Compressed Natural Gas (CNG) compression and refuelling facility from Gas Network Services Limited (GNSL), according to a merger notice released by the Federal Competition and Consumer Protection Commission (FCCPC).
This acquisition marks a significant step in Nigeria’s push to expand its CNG infrastructure, improve nationwide energy accessibility, and accelerate adoption of cleaner fuels. The facility includes infrastructure for vehicle refuelling and gas delivery to off-grid industrial clients, contributing to virtual pipeline development.
NGML’s acquisition aligns with the Federal Government’s Presidential Compressed Natural Gas Initiative (P-CNGi), introduced in August 2023 to mitigate the effects of fuel subsidy removal by promoting CNG as a cost-effective and environmentally friendly fuel alternative.
The FCCPC noted that the deal could reshape competitive dynamics in the CNG market, but emphasized its likely benefits to consumers through expanded access and lower energy costs.
Key Highlights
- The facility will improve fuel options for industries and transportation beyond existing pipeline networks.
- The acquisition supports the national CNG initiative targeting 11,500 CNG vehicles and 55,000 conversions.
- A related $27.3 million MoU with LNG Arete Ltd. aims to deploy a gas plant in Northern Nigeria, addressing regional energy deficits and stimulating job creation.
