NNPC Gas Marketing Limited (NGML) and A4E Energy have announced a significant partnership to construct a natural gas distribution facility in Ajaokuta, Nigeria.
The facility, which will have a capacity of 100 million standard cubic feet per day (mmscf/d), is set to play a crucial role in enhancing the supply of natural gas to various domestic operations, including liquefied natural gas (LNG) activities, compressed natural gas (CNG) compression units, and other gas-dependent enterprises in the region.
The new city-gate facility aligns with Nigeria’s strategic initiatives aimed at leveraging its natural gas resources to drive industrial growth and support the transportation sector.
As the country seeks to optimize its gas usage, the project stresses the importance of natural gas in promoting economic development and sustainability.
As part of the partnership, NGML and A4E Energy have established a ten-year Gas Sales and Purchase Agreement (GSPA).
Under this agreement, NGML will supply 5 mmscf/d of gas to A4E Energy’s CNG compression facility and its associated dispensing stations.
The arrangement is expected to enhance the accessibility of gas for domestic consumers while promoting the use of cleaner energy sources.
This development is a key component of Nigeria’s “Decade of Gas” initiative and the presidential CNG programs.
The initiatives are focused on maximizing the country’s gas resources for national development, supporting job creation, and fostering a sustainable energy future.
NGML is recognized as Nigeria’s leading downstream gas marketing and distribution firm, playing a vital role in the country’s gas supply chain. A4E Energy on the other hand, is a wholly indigenous company dedicated to advancing Nigeria’s gas and renewable energy sectors.
In related news, TotalEnergies and the Nigerian National Petroleum Corporation Limited (NNPCL) are planning to invest $550 million in a new gas processing facility located in Rivers State.
The investment aims to bolster gas exports and enhance domestic supply chains by constructing a gas processing plant and pipeline.
Additionally, in June 2024, TotalEnergies, along with NNPCL, made a final investment decision to develop the Ubeta gas field in the OML 58 onshore license. The project is set to connect to existing Obite facilities through an 11 km pipeline, with production expected to commence in 2027.
Once operational, the Ubeta gas field is projected to achieve a peak capacity of 300 mmscf/d, further strengthening Nigeria’s gas production capabilities.
Experts say the partnership between NGML and A4E Energy is a major step forward in Nigeria’s efforts to harness its gas resources effectively.
“Such initiatives are critical to ensuring sustainable growth and energy security.
“With ongoing investments and developments in the gas sector, Nigeria is poised to enhance its position in the global energy market while meeting domestic energy needs,” one of such experts said.
