NNPC Gas to Acquire Major CNG Facility from Gas Network Services Limited
NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), has announced plans to acquire a 5.2 million standard cubic feet per day Compressed Natural Gas (CNG) compression and refueling facility currently operated by Gas Network Services Limited (GNSL).
This strategic acquisition was revealed in a recent merger and acquisition notice published by the Federal Competition and Consumer Protection Commission (FCCPC), signaling an important development in Nigeria’s natural gas infrastructure expansion efforts.
The facility being acquired specializes in virtual pipeline solutions, compressing natural gas for delivery to industrial and commercial customers through mobile tube trailers. It also features vehicle refueling capabilities for natural gas vehicles (NGVs), primarily serving customers beyond the reach of conventional gas pipelines.
This acquisition represents a significant enhancement to NGML’s capabilities in marketing and distributing natural gas throughout Nigeria. Industry analysts expect the transaction to strengthen the CNG market by expanding infrastructure capacity and improving the accessibility and affordability of compressed natural gas, particularly for transportation and commercial users.
The move directly supports the Presidential Compressed Natural Gas Initiative (P-CNG Initiative), launched in August 2023, which was established to mitigate the effects of fuel subsidy removal and reduce energy costs nationwide. The initiative promotes CNG as a more economical and environmentally friendly alternative to conventional fuels.
By expanding CNG infrastructure, NGML’s acquisition is poised to accelerate Nigeria’s transition toward a more sustainable energy landscape while providing economic relief through lower-cost fuel options.
While the FCCPC has noted that the transaction could influence competitive dynamics in the CNG market, it has also indicated that consumers stand to benefit through improved access to cleaner energy alternatives.
