Peter Uzoho

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.

PCNGi’s Chief Executive Officer, Michael Oluwagbemi, said the project will boost investment in compressed natural gas (CNG) infrastructure, expand its availability, and create new opportunities in the sector.

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 would provide jobs for over 100 Nigerians while accelerating the development of CNG infrastructure in the northern region and secure a 25 per cent 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.

“From the producing fields, the project will focus on a liquefaction plant and an implant storage at Ajaokuta, and eventual pipeline trucks which will be able to move gas over further distances across the north of Nigeria.”

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, 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 Senegal, ensuring Nigerian products are very competitive and creating jobs.”

On her part, Hajara Pitan, project director at LNG Arete, commended President Bola Tinubu, the management of P-CNGi, and others who contributed to making the agreement possible.

“Our aim is clear in LNG Arete to support the federal government in deepening gas utilisation across Nigeria, and especially in the underserved regions of northern Nigeria.”

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