NNPC Gas Marketing Limited (NGML) and A4E Energy have signed an agreement to construct a 100 million standard cubic feet per day (MMSCF/D) natural gas distribution facility in Ajaokuta, Kogi State.
In a statement on NNPCL’s website, the company stated that the gas city-gate will supply natural gas to domestic LNG plants, compressed natural gas (CNG) facilities, and other industries in the Ajaokuta area that require gas.
The NGML further explained that as part of the collaboration, it also signed a 10-year Gas Sales and Purchase Agreement (GSPA) to supply 5 MMSCF/D of natural gas to A4E Energy’s CNG compression facility and CNG dispensing stations.
The statement reads, “NNPC Gas Marketing Limited (NGML) and its partner, A4E Energy have signed an agreement to construct a 100 mmscf/d natural gas distribution facility in Ajaokuta, Kogi state.”
“The gas facility (city-gate) will enable the natural gas supply to various domestic LNG facilities, CNG compression, and other facilities requiring gas in the Ajaokuta area.”
“Similarly, NGML signed a 10-year Gas Sales & Purchase Agreement (GSPA) to supply 5mmscf/d gas to A4E Energy’s CNG compression facility and CNG dispensing stations.”
The statement noted that the initiatives align with the Federal Government’s Decade of Gas program and the Presidential CNG initiative, aimed at driving industrialization and transforming the transportation sector through gas adoption.
NGML, Nigeria’s largest downstream gas marketing and distribution company, is partnering with A4E Energy, a fully indigenous company involved in downstream and midstream gas operations. A4E seeks to leverage Nigeria’s abundant natural gas resources for industrial development and the benefit of its citizens.
What you should know
The Nigerian National Petroleum Company (NNPC) Limited is leading the AKK Gas Pipeline Project to enhance Nigeria’s gas pipeline infrastructure, addressing rising power demands and supporting gas-based industries.
The Group CEO of the Nigerian National Petroleum Corporation (NNPC) Limited announced that the Ajaokuta-Kaduna-Kano (AKK) gas pipeline is scheduled for completion in the first quarter of 2025.
This ambitious project involves the construction of a 40-inch, 614-kilometer pipeline stretching from Ajaokuta in Kogi State to Kano, with intermediate and terminal gas facilities along the route.
The pipeline will deliver natural gas to key locations, including Abuja, Kaduna, and Kano, providing a reliable energy source for various sectors.
The AKK pipeline aims to reduce deforestation by offering a cleaner fuel alternative for power generation, cooking, transportation, and industrial activities.
The project is expected to transform the energy landscape in these regions, driving economic growth and sustainability.
Source: Nairametrics
