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Gasnexus-NNPCL Gas Project To Boost Energy Security, Industrial Growth

by Chika Izuora
February 8, 2025
in Business
NNPC

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The managing director of NNPC Gas Marketing Limited (NGML), HRM Justin Ezeala, has emphasized the significance of the mini-LNG project launched by Gasnexus in collaboration with NGML, highlighting its role in ensuring energy security and driving industrial growth in Nigeria.
The project marks a crucial step in the country’s transition to cleaner energy and reflects a shared commitment to expanding access to sustainable energy solutions. Ezeala noted that the partnership with Gasnexus is aimed at unlocking the full potential of natural gas as a driver of economic transformation. He stressed that beyond delivering Liquefied Natural Gas (LNG), the initiative will empower businesses and strengthen Nigeria’s industrial sector.
Upon completion, the small-scale LNG plant will extend natural gas supply to industrial and commercial customers outside the existing pipeline network, particularly in Northern Nigeria. It will also support the Federal Government’s gas flare reduction initiative while creating new opportunities for gas commercialization.
Gasnexus, a subsidiary of Axxela, is working in a joint venture with NGML and other private sector partners under the Nigerian National Petroleum Company Limited (NNPCL) to establish the small-scale LNG plant in Ajaokuta, Kogi State. The groundbreaking event, themed From Gas to Prosperity: Catalysing Nigeria’s Economic Growth, marked the beginning of five mini-LNG projects in Ajaokuta, reinforcing the government’s commitment to sustainable energy development.
The Gasnexus/NGML project will feature a 20MMSCFD small-scale LNG plant, developed in phases. The first phase will establish a 7.5 MMSCFD facility, utilizing natural gas from the existing Oben-Ajaokuta pipeline to serve customers in the North and other regions with limited pipeline access.
Speaking at the event, Franklin Umole, Managing Director of Axxela Gas Midstream Infrastructure, underscored the project’s importance, particularly in addressing energy needs in underserved areas still reliant on traditional fossil fuels.
“The demand for cleaner energy in regions dependent on outdated and inefficient fuels presents a significant market opportunity,” Umole stated. “With the plant’s strategic location in Ajaokuta, we are committed to expanding access to reliable and affordable natural gas. Today, we lay the foundation for a future that not only powers industries and the economy but also strengthens our commitment to sustainable energy solutions. We are not just building infrastructure—we are shaping the future of energy.”
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