NNPC to acquire CNG facility from Axxela’s subsidiary
The NNPC Gas Marketing Limited (NGML) plans to acquire a 5.2 million standard cubic feet per day (mmscfd) compressed natural gas (CNG) compression and refuelling facility, according to the Federal Competition and Consumer Protection Commission (FCCPC).
In a notice dated April 25, the commission said the CNG facility is owned by Gas Network Services Limited (GNSL), a subsidiary of Axxela Group.
“NGML, a subsidiary of the Nigerian National Petroleum Company Limited (NNPC), is engaged in the marketing and distribution of natural gas,” the notice reads.
“GNSL focuses on providing virtual pipeline solutions for the distribution of Compressed Natural Gas (CNG) in Nigeria. It operates the Facility, which compresses natural gas for delivery via mobile tube trailers to industrial and commercial customers.
“The Facility also includes dispensing points for refuelling natural gas vehicles (NGVs). GNSL primarily serves clients located beyond the reach of pipeline infrastructure, thereby enhancing access to cleaner and more cost-effective energy alternatives.”
FCCPC noted that the transaction will impact the CNG market.
“By enhancing the CNG infrastructure, the acquisition will expand access to cleaner, more affordable energy, benefiting consumers, particularly in the transport and commercial sectors,” the commission said.
“The strategic and economic rationale for this acquisition is rooted in the Presidential Compressed Natural Gas Initiative (PCNG Initiative), launched in August 2023.
“The initiative seeks to mitigate the effects of fuel subsidy removal and reduce energy costs across Nigeria.”
FCCPC added that the acquisition supports the national effort by enabling the fast-tracking of CNG infrastructure roll-out, thereby promoting the adoption of CNG as a more environmentally-friendly and cost-effective fuel alternative.
