- LNG Arete Limited and the Presidential Compressed Natural Gas Initiative have inked a memorandum of understanding
- The goal is to build a liquefied natural gas (LNG) facility worth $27.3 million that can produce seven million standard cubic feet per day
- The initiative intends to increase funding for CNG infrastructure, increase the supply of CNG, and open up new business prospects
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Presidential Compressed Natural Gas Initiative (PCNGi) and LNG Arete Limited have signed a $27.3 million memorandum of understanding (MoU) to construct a seven-million standard cubic feet per day (mmscfd) liquefied natural gas (LNG) plant.
Michael Oluwagbemi, PCNGi chief executive officer (CEO), said the project aims to boost investment in compressed natural gas (CNG) infrastructure, expand its availability, and create new opportunities in the sector.
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He said PCNGi is co-investing ($6 million) alongside LNG Arete ($12 million) and the Midstream Downstream Gas Infrastructure Fund under the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Oluwagbemi said the project will provide jobs for over 100 Nigerians while accelerating the development of CNG infrastructure in the northern region and secure a 25 percent equity stake in LNG Arete’s seven-thousand standard cubic feet per day (mscfd) mini LNG facility in Ajaokuta, Kogi state.
Oluwagbemi said the project will establish a key supply hub for CNG in northern Nigeria and beyond within 12 to 16 months, ensuring a stable and cost-competitive gas supply for underserved industries and residents.
He said President Bola Tinubu is determined to introduce affordable transportation programmes by harnessing the country’s abundant gas resources to meet the growing demand for industrial and transport gas, ensuring steady supply to end-users.
“Gas is cheaper, it is safer, and more reliable,” he said.
Oluwagbemi said the LNG, once converted to CNG, will power plants, vehicles, and industries, boosting industrialisation across the north, including textiles, agriculture, processing, and manufacturing.
“The logistics, of course, of moving goods and food items from the north down to the south, especially, processed and manufactured products, will also be cheaper because of this project,” he said.
“And even more importantly, is that even when the north gets piped by natural gas in a few years’ time, this plant is still going to be very critical to enable LNG trucks that run more efficiently on LNG, even better than CNG.
“Those LNG trucks will begin to move Nigerian products from Nigeria to Ghana, and to Senegal, ensuring Nigerian products are very competitive and creating jobs.”
FG plans new 150 retail stations to buy cheaper CNG fuel
Legit.ng reported that Michael Oluwagbemi, the programme director and chief executive of the Presidential Compressed Natural Gas Stations Initiative has announced plans to have no fewer than 150 retail stations before the end of 2025.
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He disclosed this during the groundbreaking ceremony of five mini-liquefied natural gas plants in Kogi by the Nigerian National Petroleum Company Limited.
He added that the presidential CNG initiative is hoping to attract millions of dollars in investment this year.
