The Presidential Compressed Natural Gas Initiative (P-CNGi) has partnered with LNG Arete Ltd. to establish a $27.3 million mini-LNG gas plant in Ajaokuta, Kogi State. The project aims to boost compressed natural gas (CNG) infrastructure, particularly in northern Nigeria.
According to P-CNGi CEO, Mr. Michael Oluwagbemi, the plant will process seven million standard cubic feet of gas per day (MMSCFD) and is expected to become operational within 12 to 16 months. The initiative will create over 100 jobs and serve as a major supply hub for CNG in underserved regions.
Funding for the project includes $6 million from P-CNGi, $12 million from LNG Arete, and support from the Midstream and Downstream Gas Infrastructure Fund under the NMDPRA. The initiative also secures a 25% equity stake for P-CNGi in the facility.
Oluwagbemi emphasized the project’s role in supporting affordable transportation, industrial growth, and wider gas accessibility in line with President Bola Tinubu’s gas utilization drive. He also noted the synergy with the Ajaokuta-Kaduna-Kano (AKK) pipeline project.
Hajara Pitan, Project Director of LNG Arete, highlighted how the mini-LNG model lowers infrastructure costs and allows broader participation in the gas sector. She reaffirmed the company’s goal to support the federal government in deepening gas use across Nigeria.
Source: orientalnewsng.com
