In a market-shifting move, NNPC Gas Marketing Limited (NGML) is set to acquire a massive 5.2 million standard cubic feet per day Compressed Natural Gas (CNG) compression and refueling facility from Gas Network Services Limited (GNSL).
The acquisition, revealed in a merger notice by the Federal Competition and Consumer Protection Commission, represents a game-changing development in Nigeria’s push toward cleaner energy alternatives.
GNSL currently operates the facility, specializing in compressing natural gas and delivering it to industrial and commercial customers through mobile tube trailers. The facility features multiple dispensing points for natural gas vehicles, primarily serving clients beyond traditional pipeline networks.
This bold move by NGML is poised to dramatically strengthen Nigeria’s CNG market by expanding infrastructure capacity and making compressed natural gas more accessible and affordable, particularly for transportation and commercial sectors.
The acquisition perfectly aligns with the Presidential Compressed Natural Gas Initiative launched in August 2023, which aims to cushion the impact of fuel subsidy removal while reducing energy costs nationwide through the adoption of cleaner fuel alternatives.
Industry analysts view this as a strategic masterstroke to accelerate the nationwide rollout of CNG infrastructure, supporting Nigeria’s transition toward a more sustainable and economical energy landscape.
Source: nairametrics.com
