The agreement also includes a ten-year GSPA between NGML and A4E Energy. NGML and A4E Energy to construct a 100mmscf/d natural gas distribution facility in Nigeria. Credit: T.Schneider/Shutterstock.

NNPC Gas Marketing Limited (NGML) and A4E Energy have partnered to construct a 100 million standard cubic feet per day  (mmscf/d) natural gas distribution facility in Ajaokuta, Nigeria.

The city-gate facility is designed to enhance the supply of natural gas to domestic LNG operations, CNG compression units, and other gas-dependent entities in the region.

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This development aligns with Nigeria’s strategic initiatives to utilise gas for driving industrial and transport sectors.

The agreement also includes a ten-year Gas Sales & Purchase Agreement (GSPA) between NGML and A4E Energy.

Under this agreement, NGML will supply 5mmscf/d of gas to A4E Energy’s CNG compression facility and its dispensing stations.

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These projects are part of the broader decade of gas and presidential CNG initiatives aimed at leveraging Nigeria’s gas resources for national development.

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NGML stands as Nigeria’s key downstream gas marketing and distribution firm, while A4E Energy is a wholly indigenous company active in the gas and renewable energy sectors.

In June 2024, TotalEnergies and NNPC planned to invest $550m in a new gas processing facility in Rivers State.

The aim of the investment was to bolster gas exports, strengthen domestic supply chains by building a gas processing plant and a pipeline.

TotalEnergies, alongside its partner NNPCL, also made a final investment decision in June 2024 to develop the Ubeta gas field within the OML 58 onshore licence.

The field is set to be connected to existing Obite facilities through an 11km pipeline. The production is expected to commence in 2027, and the gas field is expected to reach a peak capacity of 300mmscf/d.