Kogi State to Host Major LNG and CNG Project as NNPCL Teams Up with Zuid Energies

In a major push to accelerate Nigeria’s energy transition and strengthen its domestic gas infrastructure, the NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL), has announced a strategic partnership with Zuid Energies Limited. The partnership is set to establish a state-of-the-art gas project in Ajaokuta, Kogi State, which includes a Compressed Natural Gas (CNG) plant and a Liquefied Natural Gas (LNG) facility.

According to a statement released on Friday, NGML disclosed that this joint venture will see the development of a CNG plant capable of handling six million standard cubic feet of gas per day, along with a massive LNG facility designed to process up to 40 million standard cubic feet daily. The initiative is seen as a key part of NNPCL’s broader strategy to improve access to cleaner energy, strengthen gas distribution infrastructure, and support industrial development across Nigeria.

The signing of the joint venture agreement took place in Abuja during the Mobility-CNG Stakeholders Workshop, a key industry event focused on expanding Nigeria’s use of CNG in transportation and other sectors. Themed “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector,” the workshop brought together various players from the energy and transportation industries, alongside regulators and government officials.

NNPCL’s recent announcement underscores its commitment to harnessing Nigeria’s vast natural gas resources. By collaborating with Zuid Energies, the national oil company aims to deliver innovative solutions for distributing gas to areas not currently connected to major pipeline infrastructure. This includes using virtual pipeline systems, which allow gas to be transported via trucks to off-grid communities and industrial users.

This development is particularly significant for Ajaokuta and Kogi State as a whole. With Nigeria’s gas reserves largely untapped, projects like these not only promise economic growth but also support the country’s move toward more sustainable and environmentally friendly energy sources. NGML noted that the project will open up new commercial opportunities and help close the energy access gap in underserved regions.

This isn’t the first time NNPCL has spotlighted Ajaokuta as a hub for its gas ambitions. Earlier this year, the company announced the commencement of construction on five mini-LNG plants in the same area. Combined, these plants are expected to process up to 97 million standard cubic feet of gas daily.

The groundbreaking ceremony for those plants marked a turning point in the government’s efforts to promote gas as a cleaner, more affordable alternative to traditional fuels. At the event, several companies were identified as partners in the mini-LNG initiative. These included NNPC Prime LNG, NGML in partnership with Gasnexus, BUA LNG, Highland LNG, and LNG Arete.

Each of these facilities is part of a broader plan to provide energy for cooking, transportation, and power generation. The goal is to reduce Nigeria’s dependence on imported fuels, while also addressing climate concerns through lower carbon emissions.

Former Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, described the collaboration between NNPCL and its private sector partners as a historic move. He emphasized that the partnerships signify a bold leap toward achieving national energy sufficiency, providing critical support for off-grid industrial operations, and pushing forward Nigeria’s environmental sustainability goals.

Gas, especially CNG and LNG, is viewed globally as a cleaner alternative to diesel and petrol. It emits fewer greenhouse gases and is more cost-effective in the long run. In Nigeria, where the cost of fuel has surged and electricity remains unreliable for many households and businesses, gas presents an appealing solution.

By tapping into Kogi State’s rich gas deposits and expanding distribution through virtual pipelines, the NGML and Zuid Energies project will not only reduce energy costs but also help power homes, small businesses, and factories that are currently disconnected from the national grid.

The federal government has been promoting natural gas as the fuel of the future through various policies and campaigns. One of the most visible efforts is the Presidential CNG Initiative, which aims to transition thousands of vehicles from petrol and diesel to CNG. As part of this campaign, a 10-for-10 program was launched, targeting the conversion of 10,000 commercial vehicles to run on CNG within a 10-week timeframe.

As the country grapples with fluctuating fuel prices, foreign exchange challenges, and a growing demand for electricity, projects like the one in Ajaokuta offer a glimmer of hope. They demonstrate the potential of public-private partnerships to deliver real infrastructure that benefits everyday Nigerians.

For the people of Kogi State, the NGML and Zuid Energies project could serve as a catalyst for job creation, economic revitalization, and improved living standards. Local industries may finally have access to affordable and reliable energy, enabling them to scale operations and compete more effectively.

As the LNG and CNG facilities begin to take shape, they will not only support the national energy agenda but also contribute to Nigeria’s environmental commitments under international climate agreements. Cleaner fuels like natural gas are critical to transitioning away from dirtier energy sources and building a more resilient, inclusive economy.

In summary, the collaboration between NGML and Zuid Energies in Ajaokuta is more than just a business deal. It represents a step forward in Nigeria’s journey toward energy independence, environmental sustainability, and equitable economic development. If executed successfully, it could pave the way for similar partnerships and projects across other parts of the country.