Kogi State to Host Major LNG Expansion as NNPCL Collaborates with Zuid Energies on 40 Million Cubic Feet Gas Project

In a bold move to strengthen Nigeria’s natural gas distribution infrastructure, the NNPC Gas Marketing Limited (NGML) has announced a new joint venture agreement with Zuid Energies Limited. This strategic collaboration focuses on constructing a 6 million standard cubic feet per day Compressed Natural Gas (CNG) plant alongside a 40 MMSCFD (Million Standard Cubic Feet per Day) Liquefied Natural Gas (LNG) plant in Ajaokuta, Kogi State.

This major announcement was made public in a statement released on Friday by the Nigerian National Petroleum Company Limited (NNPCL). The initiative is part of a wider vision to extend gas marketing and improve access to energy solutions across the country.

Strategic Collaboration Unveiled at Industry Event

The formal signing of the partnership agreement took place during the Mobility-CNG Stakeholders Workshop held in Abuja. The event, themed “Deepening Industry Alignment for a Sustainable Mobility-CNG Sub-Sector,” brought together top regulators, industry stakeholders, and gas ecosystem players.

NNPCL emphasized that this partnership reflects NGML’s ongoing strategy to work with private sector players, particularly in providing innovative Virtual Pipeline Solutions. These solutions aim to improve gas supply to off-grid communities and regions with insufficient energy access.

Broader Energy Investment in Kogi State

This recent development aligns with earlier reports highlighting NNPCL’s commitment to expanding its energy footprint in Kogi State. LMSINT MEDIA previously reported on January 31, 2025, that NNPCL launched the construction of five mini-LNG plants in Ajaokuta, with a total daily capacity of 97 million standard cubic feet.

According to the national oil giant, these LNG projects are being developed in partnership with various private firms to enhance domestic gas utilization, particularly for household cooking, power generation, and automotive mobility.

Details of the LNG Project Line-up

As outlined in an earlier statement by Olufemi Soneye, the former Chief Corporate Communications Officer of NNPCL, the following five LNG projects are currently under construction:

• NNPC Prime LNG
• NGML/Gasnexus LNG
• BUA LNG
• Highland LNG
• LNG Arete

Soneye described this initiative as a “groundbreaking collaboration” that reflects the government’s commitment to energy self-reliance, boosting off-grid industrial operations, and reducing carbon emissions through clean fuel alternatives.

Harnessing Kogi’s Natural Gas Potential

These ongoing developments will tap into the abundant natural gas reserves in Kogi State, especially via the Ajaokuta-Obajana pipeline, to strengthen the national supply of LNG and CNG. These resources are expected to fuel power stations, cooking gas outlets, and vehicles, thereby expanding Nigeria’s energy access and reducing dependency on imported fuels.

Additionally, this initiative supports the Federal Government’s 10-for-10 Campaign, which aims to transition 10,000 commercial vehicles to CNG fuel within 10 weeks, promoting cleaner transportation alternatives.