NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited, is preparing 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). The development, confirmed through a merger and acquisition notice issued by the Federal Competition and Consumer Protection Commission, marks a major step towards expanding Nigeria’s CNG infrastructure and advancing access to cleaner energy alternatives.
GNSL, the current operator of the facility, is known for providing virtual pipeline solutions by compressing natural gas and transporting it to industrial and commercial clients using mobile tube trailers. The facility also features dispensing points for refuelling natural gas vehicles, particularly for customers outside the traditional gas pipeline network.
With this acquisition, NGML aims to enhance its capacity in the marketing and distribution of natural gas across the country. The transaction is expected to significantly boost the availability and affordability of CNG, especially for the transportation and commercial sectors. This move aligns closely with the goals of the Presidential Compressed Natural Gas Initiative launched in 2023 to mitigate the effects of fuel subsidy removal and lower nationwide energy costs by encouraging the use of CNG as a cleaner, cheaper fuel option.
NGML’s acquisition is seen as a strategic effort to accelerate the rollout of CNG infrastructure nationwide, supporting broader national ambitions to create a more sustainable and cost-effective energy sector. The Federal Competition and Consumer Protection Commission acknowledged that the transaction could influence competitive dynamics within the CNG market but emphasized the likely benefits for consumers through expanded access to cleaner energy solutions.
In addition to this acquisition, the government’s broader efforts to expand CNG infrastructure continue to gain momentum. Recently, the Presidential Compressed Natural Gas Initiative and LNG Arete Limited signed a Memorandum of Understanding for a $27.3 million gas plant project aimed at strengthening CNG capacity across Northern Nigeria. The project seeks to address the long-standing energy challenges facing the region’s transportation and industrial sectors, which have historically struggled with limited access to reliable and affordable energy.
The Presidential Compressed Natural Gas Initiative was established to transform Nigeria’s transportation landscape, with targets that include introducing over 11,500 new CNG-enabled vehicles and deploying 55,000 CNG conversion kits for vehicles previously dependent on premium motor spirit. The initiative also envisions boosting local manufacturing and the assembly of conversion kits, creating new job opportunities, and stimulating economic activity across the country.
Through these coordinated efforts, Nigeria is positioning itself to develop a robust CNG ecosystem capable of delivering more affordable, sustainable energy solutions for its growing population and economy.
