NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigeria National Petroleum Company Limited (NNPCL) is partnering a private firm, A4E Energy to construct a 100 million standard cubic feet per day (MMSCF/D) natural gas distribution facility in Ajaokuta, Kogi State.
The firm said in a statement that the gas city-gate will supply natural gas to domestic LNG plants, compressed natural gas (CNG) facilities, and other industries that require gas in the Ajaokuta area.
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.