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NNPC said that NNPC Gas Marketing (NGML) entered the new agreement as part of its strategic drive to expand gas marketing and distribution across Nigeria.
The JV will develop a 6 million standard cubic feet of gas per day (mmscf/d) capacity compressed natural gas (CNG) plant and a 40 mmscf/d LNG facility in Ajaokuta.
“The development demonstrates NGML’s commitment to leveraging private sector partnerships to deliver innovative virtual pipeline solutions that enable efficient gas supply to off-grid and underserved areas,” NNPC said.
The company did not provide further information.
Earlier this year, NNPC and its partners held a groundbreaking ceremony for five small-scale LNG plants in Ajaokuta, Kogi state.
The five small-scale liquefaction, storage, and distribution projects are Prime LNG, NGML/Gasnexus LNG, Bua LNG, Highland LNG, and LNG Arete.
NNPC has stakes in three of the five mini-LNG plants (90 percent in Prime LNG, 50 percent in NGML/Gasnexus LNG and 10 percent in BUA LNG), while Highland LNG and LNG Arete are developed by other private companies.
The plants have a combined capacity of 97 mmscf/d.
In addition to these plants, NNPC signed a deal with compatriot Ssonic Petroleum in March to supply the latter’s proposed LNG plant in the Lekki free trade zone, Lagos.
