Business News of Sunday, 1 March 2026

Source: www.punchng.com

NNPC pushes CNG investments as AKK nears completion

The Nigerian National Petroleum Company Limited and other industry stakeholders have intensified efforts to attract investors ahead of the expected first gas delivery from the Ajaokuta–Gwagwalada segment of the AKK Gas Pipeline by July 2026.

The project, a critical component of the Ajaokuta–Kaduna–Kano pipeline network, is designed to boost domestic gas supply, support power generation, and stimulate industrial growth across northern Nigeria, with officials expressing confidence that its completion will unlock significant economic opportunities along the corridor.

This came as the national oil company called on investors to take advantage of emerging opportunities in compressed natural gas infrastructure, declaring that Nigeria has transitioned from an oil-focused economy to a gas-first nation in its drive for energy security and industrial growth.

The Executive Vice President, Gas, Power and New Energy of the Nigerian National Petroleum Company Limited, Olalekan Ogunleye, made the call in a statement on Friday following a stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja, where he was represented by Kachala Suleman.

The workshop, convened by Portland Gas Limited, focused on investment opportunities in a proposed mini-LNG and L-CNG station in Gwagwalada, Abuja, which stakeholders said would strengthen Nigeria’s gas commercialisation and transportation reform agenda.

In his address titled “Powering the Future: Leveraging CNG Infrastructure to Drive Nigeria’s Energy Transition and Sustainable Growth,” Ogunleye said the country’s long-standing oil dominance had given way to a strategic gas-led transition.

“For decades, Nigeria was described as an oil nation that happened to have some gas. That narrative has now been permanently retired,” he said. “As we advance the implementation of the NNPC Gas Master Plan and execute the national Decade of Gas agenda, Nigeria has become a gas-first nation, strategically, commercially, and operationally.”

He disclosed that the company had set measurable targets to scale gas output in line with national economic goals. “Our mandate is clear and measurable. We aim to increase national gas production to 10 billion cubic feet per day by 2027 and scale further to 12 billion cubic feet per day by 2030. These are not aspirational slogans. They are economic necessities for a country of over 230 million people seeking industrial revival, energy security, and global competitiveness,” he said.

According to him, Nigeria’s gas sector presents compelling opportunities for investors, citing proven reserves and growing domestic demand. “Nigeria holds over 210 trillion cubic feet of proven gas reserves, among the largest in Africa. Domestic supply has already surpassed 2 billion cubic feet per day, signalling readiness for industrial expansion,” Ogunleye stated.

He added that the CNG segment had witnessed rapid growth, with over $200m in private investment commitments and more than 300 conversion centres nationwide. “Our target is one million CNG vehicle conversions by 2027. Each conversion reduces fuel imports, preserves foreign exchange, lowers transport costs, and strengthens macroeconomic stability,” he said.

The NNPC official also backed Portland Gas Limited’s proposed Mini-LNG and L-CNG facility in Gwagwalada, Abuja, highlighting the project as a cornerstone of Nigeria’s gas-driven industrial growth and energy security strategy.

He noted that the Ajaokuta–Kaduna–Kano gas pipeline, particularly the Ajaokuta–Gwagwalada segment, expected to deliver first gas by July 2026, would transform energy supply in northern Nigeria, unlocking industrial demand, power generation, auto CNG, and mini-LNG expansion. NNPC will supply piped gas to Portland Gas’ Gwagwalada plant.

The Gwagwalada Mini-LNG and L-CNG project is now positioned as a strategic initiative to expand domestic gas infrastructure, strengthen industrial competitiveness, and support Nigeria’s long-term energy and economic goals.

“At the heart of our midstream transformation is the 614-kilometre AKK pipeline. The Ajaokuta–Gwagwalada segment is projected to be commissioned, with first gas expected by July 2026,” he said.

He noted that the project would link northern industrial hubs to gas supply, enabling competitive power generation, manufacturing expansion, auto-CNG growth, and job creation. “The countdown to July 2026 has begun. When the first valve opens, it will not simply release gas; it will release productivity, industrial growth, and economic renewal,” Ogunleye said.

He described Gwagwalada as a strategic logistics hub with strong demand from transport operators, manufacturers, agro-processing clusters, and real estate developers. “The mini-LNG and L-CNG station will fuel vehicles, power industry, reduce diesel dependence, and strengthen energy resilience. Positioned at the AKK Abuja take-off node, the project aligns strongly with market demand and investor appetite,” he added.

He disclosed that NNPC will supply piped natural gas to the facility, which will function as a “mother station” for mobile refuelling units and retail outlets. “This is infrastructure meeting real demand. With scalable deployment and reliable supply, early investors are positioned to shape the next decade of clean energy growth,” he said.

Ogunleye said natural gas would remain the anchor of Nigeria’s energy transition, as replacing diesel and petrol with LNG and CNG could reduce transport emissions by about 25 per cent while improving air quality. He added that Nigeria’s zero routine gas flaring mandate would capture wasted gas and channel it into productive use.

The Chairman of the Presidential Compressed Natural Gas Initiative, Ismaeel Ahmed, represented by Tosin Coker, said Nigeria was building a competitive gas economy that would reduce transport costs and stimulate local manufacturing.

“Nigeria is not merely transitioning energy systems; we are building a competitive gas economy. That shift requires more than policy pronouncements. It requires infrastructure, capital, partnerships, and execution,” he said.

He noted that CNG conversion centres and refuelling stations were expanding nationwide. “Policy must move beyond documents and become visible infrastructure, stations built, vehicles converted, jobs created, and costs reduced. Today, we are seeing that transformation unfold,” Ahmed said.

According to him, mini-LNG and L-CNG infrastructure would address availability, accessibility, and scalability challenges. “These systems allow gas to move beyond pipeline limitations and reach emerging demand centres. They enable fleet refuelling, support industrial clusters and unlock regional growth,” he added.

Ahmed said the government was strengthening regulatory coordination, safety frameworks, and certification processes to de-risk investments. “The message to investors is simple: Nigeria’s gas market is not speculative; it is strategic. Every station built generates employment. Every conversion centre develops new technical expertise. Every fleet converted improves cost efficiency and environmental performance,” he said.

In her remarks, the Chief Commercial Officer of Portland Gas, Michelle Ejiofor, said the project would bridge the gap between stranded gas and end users while lowering energy costs. “This is more than a project; it is a bridge between high energy costs and affordable alternatives, between environmental concerns and cleaner energy solutions,” she said.

She added that the workshop was aimed at unlocking partnerships among government, investors, regulators, and technology providers to accelerate decentralised gas infrastructure development.

Nigeria has intensified efforts to expand gas utilisation as part of its energy transition strategy, following the removal of petrol subsidies and rising fuel costs. The Federal Government has also promoted CNG adoption through incentives and fleet conversion programmes to reduce dependence on imported fuels.

Large-scale investments in pipelines, mini-LNG facilities, and virtual gas distribution networks are needed to reshape Nigeria’s energy landscape, improve industrial competitiveness, and strengthen macroeconomic stability.