NNPC set to acquire 5.2 million standard cubic feet per day CNG facility

NNPC set to acquire 5.2 million standard cubic feet per day CNG facilityNNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), is set 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).

This development, disclosed in a merger and acquisition notice issued by the Federal Competition and Consumer Protection Commission (FCCPC), marks a significant move towards expanding Nigeria’s CNG infrastructure and improving access to cleaner energy alternatives.

GNSL, the current operator of the facility, specializes in providing virtual pipeline solutions by compressing natural gas and delivering it to industrial and commercial customers via mobile tube trailers.
The facility also includes dispensing points for refuelling natural gas vehicles (NGVs), catering primarily to clients outside the reach of traditional pipeline networks.

NGML is acquiring a facility to strengthen its role in Nigeria’s natural gas market, increasing infrastructure capacity and making CNG more accessible. This acquisition aligns with the Presidential Compressed Natural Gas Initiative (P-CNG Initiative), launched in August 2023, to promote CNG adoption as a cleaner, cheaper alternative to traditional fuels. The transaction could impact the CNG market competitive dynamics and consumer access to cleaner energy solutions.

Source: nairametrics.com

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