The landmark agreement, disclosed by NNPC Limited in a statement on Friday, July 25, 2025, underscores NGML’s commitment to leveraging private sector collaborations to deliver innovative virtual pipeline solutions. These solutions aim to ensure efficient gas supply to off-grid and underserved areas, thereby expanding access to cleaner and more affordable energy nationwide.
Deepening Industry Alignment for Gas Utilization
The signing ceremony for this joint venture took place on the sidelines of the Mobility-CNG Stakeholders Workshop in Abuja, an event themed "Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector." The workshop brought together key players and regulators from the downstream value chain, fostering discussions on commercial opportunities and presenting solutions in line with the Presidential CNG Initiative.
The Presidential CNG Initiative, launched in 2023, is a flagship program of the Federal Government of Nigeria. It aims to fast-track the nation's transition to cleaner, more affordable, and sustainable transportation energy sources, particularly through the widespread adoption of Compressed Natural Gas and electric vehicles. This initiative is a critical component of the government's efforts to provide succor to citizens following the removal of fuel subsidies.
This latest development builds on previous announcements regarding Ajaokuta’s emergence as a significant gas hub. As previously reported on January 31, 2025, the Nigeria National Petroleum Company Limited (NNPCL) had launched the construction of five mini-LNG plants in Ajaokuta, Kogi State. These plants have a combined capacity of producing 97 million standard cubic feet of gas per day.
NNPCL affirmed its collaboration with various private companies to construct these mini-LNG plants, which are designed to boost local gas supply for diverse applications, including cooking, mobility (through CNG and LNG for vehicles), and power generation. The groundbreaking ceremony for these five plants, held earlier this year in Ajaokuta, marked a significant step towards realizing Nigeria's gas utilization goals.
The five mini-LNG plants launched include:
- NNPC Prime LNG
- NGML/Gasnexus LNG
- BUA LNG
- Highland LNG
- LNG Arete
"This unprecedented partnership between NNPC Ltd. and private investors represents a strategic leap toward energy sufficiency, off-grid industrial support, and carbon emission reduction in the country," an earlier statement from NNPCL's former Chief Corporate Communications Officer, Olufemi Soneye, had emphasized. These projects are expected to harness Kogi State's rich natural gas deposits and leverage existing pipeline infrastructure to deliver gas across various sectors.
The new joint venture between NGML and Zuid Energies Limited further solidifies Ajaokuta's role as a critical node in Nigeria's expanding gas infrastructure, reinforcing the nation's push for a gas-powered future.