P-CNGI Partners with Private Sector to Boost Local Content with CNG Park in Ajaokuta
Thank you for reading this post, don't forget to subscribe!The Presidential Compressed Natural Gas Initiative (P-CNGI) has announced plans to collaborate with a private sector partner to establish a Compressed Natural Gas (CNG) Park in Ajaokuta, Kogi State. This initiative is aimed at boosting local content, creating jobs, building skills, and reducing dependency on imports, according to Mr. Michael Oluwagbemi, Programme Director of P-CNGI.
Oluwagbemi made this known during the flag-off of the Five Mini Liquefied Natural Gas (LNG) Plants in Ajaokuta, Kogi State, stating that the project would contribute to the transformation of Kogi into a major gas hub in Nigeria.
“This initiative will drive local manufacturing of conversion kits, contribute to job creation, and support skills development in Kogi State,” Oluwagbemi said. The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its partners also launched the construction of five LNG plants, which will generate 97 million standard cubic feet of gas per day (mmscf/d) as part of the Federal Government’s Gas Revolution Agenda (GRA).
The plants include NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete. The groundbreaking ceremony signifies a step forward in utilizing Nigeria’s natural gas resources to propel economic growth. Kogi State’s strategic location, bordering 10 states, positions it as a prime location for efficient gas distribution nationwide.
Oluwagbemi emphasized the importance of the P-CNGI’s transition to CNG, a more affordable, efficient, and environmentally friendly alternative to petrol. Since its launch in 2023, the initiative aims to convert one million commercial vehicles to CNG by 2027. The programme has made notable strides, with over 190 conversion centres and 56 CNG retail outlets already established, funded by public and private investments totaling over $470 million.
The P-CNGI also plans to expand its network to 500 conversion centres and over 150 retail outlets by the end of the year. Oluwagbemi noted that mini-LNG plants will help address gas access challenges in the North East and North West regions, particularly as work progresses on the Ajaokuta–Kaduna–Kano (AKK) pipeline.
The project aligns with Nigeria’s “Decade of Gas” agenda, which seeks to increase gas production and delivery, including Condensate, LNG, Liquefied Petroleum Gas (LPG), and CNG, to drive the country’s energy future and support sustainable growth.
