The Presidential Compressed Natural Gas Initiative (P-CNGi) has partnered with LNG Arete Ltd. to launch a $27.3 million gas plant project aimed at expanding compressed natural gas (CNG) infrastructure across Northern Nigeria. The strategic agreement, signed on Friday, is seen as a major step toward tackling the region’s longstanding energy deficiencies, particularly in the transportation and industrial sectors that suffer from poor access to affordable and reliable energy.
According to the News Agency of Nigeria (NAN), the Memorandum of Understanding was finalized by P-CNGi’s Programme Director and Chief Executive Officer, Michael Oluwagbemi, and representatives of LNG Arete Ltd. Under the agreement, a Liquefied Natural Gas (LNG) plant with a daily processing capacity of seven million standard cubic feet (MMSCFD) will be constructed in Ajaokuta, Kogi State. The facility will serve as a key supply hub for CNG distribution to the North.
Of the total funding, P-CNGi will contribute $6 million, while LNG Arete Ltd. will invest $12 million. The remaining funds will be provided by the Midstream Downstream Gas Infrastructure Fund, managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The project is expected to generate over 100 jobs and be completed within 12 to 16 months. Once operational, the plant will play a central role in converting LNG to CNG, making clean fuel more available and affordable for industries and households in northern Nigeria.
Oluwagbemi noted that the partnership aligns with P-CNGi’s broader mission of leveraging Nigeria’s natural gas reserves to deliver sustainable and cost-effective energy. He said the project will stimulate industrial growth, support local production in sectors such as textiles, agriculture, and manufacturing, and cut down on the high logistics costs that hinder the region’s economic potential.
The gas plant will also complement the ongoing Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, expanding access to gas and reducing transportation costs across the country. By providing cleaner fuel alternatives, the project is poised to improve Nigeria’s energy mix and enhance its industrial competitiveness both regionally and globally.
Speaking on behalf of LNG Arete Ltd., Project Director Hajara Pitan described the initiative as a milestone for gas utilization in Nigeria. She emphasized that the plant’s mini-LNG technology would drive local participation, create opportunities in the energy sector, and narrow the energy gap in underserved areas.
With this project, both P-CNGi and LNG Arete Ltd. are advancing Nigeria’s push toward a cleaner, more inclusive energy future while laying the foundation for stronger industrial and economic development across the northern region.
