Clean Energy: NGNL to Acquire 5.2 million SCFD CNG Facility

Clean Energy: NGNL to Acquire 5.2 million SCFD CNG Facility

By Faridat Salifu

NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC), is set to acquire a 5.2 million standard cubic feet per day (SCFD) Compressed Natural Gas (CNG) compression and refuelling facility from Gas Network Services Limited (GNSL).

This is aimed at expanding Nigeria’s CNG infrastructure and increase access to cleaner energy alternatives.

The facility, currently operated by GNSL, provides compressed natural gas to industrial and commercial clients via mobile tube trailers, and includes dispensing points for refuelling natural gas vehicles (NGVs).

This acquisition is a strategic step by NGML to strengthen its role in the natural gas distribution sector, particularly for areas without traditional pipeline networks.

Aligned with the Presidential Compressed Natural Gas Initiative (P-CNG Initiative) launched in 2023, NGML’s acquisition aims to reduce energy costs by encouraging the adoption of CNG, which offers a more affordable and sustainable alternative to traditional fuels.

The initiative also supports the country’s transition towards cleaner energy sources, particularly in the wake of fuel subsidy removal.

The acquisition is expected to improve CNG infrastructure, benefiting consumers with expanded access to cleaner energy solutions and promoting Nigeria’s energy sustainability goals.