In a bold move to reshape the energy landscape of Northern Nigeria, the Presidential Compressed Natural Gas Initiative (P-CNGi) has partnered with LNG Arete Ltd. to develop a $27.3 million gas plant project aimed at boosting access to compressed natural gas (CNG) across the region.
Signed last Friday, the landmark Memorandum of Understanding (MoU) marks a significant step in addressing the region’s persistent energy shortfalls—particularly in the transportation and industrial sectors. With millions in investment and an ambitious 12 to 16-month timeline to completion, the project promises to drive economic growth, create jobs, and reduce reliance on expensive, polluting fuels.
A Game-Changer for Northern Nigeria
At the heart of this agreement is the construction of a Liquefied Natural Gas (LNG) plant in Ajaokuta, Kogi State, with a planned processing capacity of seven million standard cubic feet per day (MMSCFD). Once operational, the plant will process and convert LNG into CNG—delivering cleaner, more affordable energy to industries, vehicles, and households throughout the north.
“This project will not only meet the energy demands of industries but also accelerate industrial growth and create jobs in the region,” said Michael Oluwagbemi, Programme Director and CEO of P-CNGi. “It’s about making energy accessible, affordable, and sustainable—especially in regions that have been historically underserved.”
Strategic Investments and Support
Under the agreement:
- P-CNGi will invest $6 million,
- LNG Arete Ltd. will contribute $12 million, and
- The Midstream and Downstream Gas Infrastructure Fund (managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA) will fund the balance.
The project is expected to create over 100 direct jobs, and significantly more through its broader economic impact—especially in sectors like textiles, agriculture, logistics, and manufacturing.
Building a Cleaner, Competitive Economy
Beyond its direct benefits, the LNG plant complements ongoing national energy infrastructure projects like the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, providing additional supply and distribution capacity across Northern Nigeria.
Oluwagbemi highlighted that the plant will serve as a central gas hub, reducing logistics costs and enabling wider use of CNG in transportation and industry. This aligns with P-CNGi’s wider vision of harnessing Nigeria’s vast natural gas reserves to drive the country toward a cleaner, low-carbon economy.
A Step Forward for Local Innovation
Hajara Pitan, Project Director at LNG Arete Ltd., described the deal as a major win for energy innovation in Nigeria. “Our mini-LNG technology allows for localized processing and distribution, helping us close the energy access gap in remote regions,” she said.
With growing global focus on clean energy transitions, this project represents not just an investment in infrastructure, but a strategic bet on Nigeria’s energy independence, industrial revival, and regional competitiveness.
As the countdown begins toward commissioning, this collaboration between government and private sector players signals a brighter, gas-powered future for Northern Nigeria.
