… begins 178km South-East gas distribution initiative, targets first gas by early 2027

Oredola Adeola

The Nigerian National Petroleum Company Limited (NNPC Ltd.) is accelerating its clean energy transition with plans to deploy 500 Compressed Natural Gas (CNG)-powered trucks and 50 cascades for the nationwide distribution of PMS, ATK, LPG, and CNG by 2026.

This is in addition to a broader roll-out strategy that will see the Company establish 151 CNG stations across Nigeria by 2028, expanding significantly from the 12 stations already commissioned in Abuja and Lagos.

The details were contained in NNPC Ltd.’s audited financial performance report for the full year ended 2024, obtained by Advisors Reports on Monday.

The nationwide CNG expansion forms a key pillar of Engr. Bayo Ojulari’s strategy as Group Chief Executive Officer of NNPC Ltd., aimed at attracting sectoral investments of US$30 billion by 2027 and US$60 billion by 2030 to transform Nigeria’s entire energy value chain.

Already, the Company has strengthened its CNG footprint with the acquisition of the 5.2 mmscfd Illasamaja CNG station in Lagos, alongside the training of over 1,000 auto mechanics in CNG vehicle conversion.

Ojulari has consistently reaffirmed his plans to boost Nigeria’s natural gas production to 10 bcf/d by 2027 and 12 bcf/d by 2030, while fast-tracking major gas infrastructure projects such as the Ajaokuta–Kaduna–Kano (AKK) pipeline, Escravos–Lagos Pipeline System (ELPS), and the Obiafu–Obrikom–Oben (OB3) pipeline.

These projects are expected to enhance domestic gas supply, strengthen regional integration, and support Nigeria’s broader energy transition goals.

The NNPC Ltd. also confirmed the commencement of the 178km South-East Gas Distribution Project, designed to connect major industrial hubs across five states in the region.

The project, according to the Company, is targeting first gas by early 2027.

That initiative builds on NNPC Ltd.’s earlier execution of 1.29 bscf/d feedgas Gas Supply Agreements (GSAs) with the Nigeria LNG Limited (NLNG) and other upstream partners, a move expected to guarantee steady gas supply to emerging industrial corridors.

NNPC Ltd. in the report also disclosed that it is also advancing several other gas and clean-energy projects.

Among these is the plan to achieve Final Investment Decision (FID) in 2026 on a 10,000 barrels per day condensate refinery, which will utilize condensate from the Oredo Integrated Gas Plant as feedstock.

The national oil company also confirm the plan to deploy of 50 LPG Micro filling plants in strategic locations nationwide by 2026.

These plants, according to NNPC, will leverage the Company’s existing storage infrastructure to enhance last-mile access to liquefied petroleum gas and reduce dependence on biomass.

The national oil company also announced progress on its small-scale LNG agenda, with plans to develop a 421 tonnes-per-day LNG plant to support domestic gas utilization by 2027.

This development follows the incorporation of NNPC Prime LNG Ltd. in Ajaokuta, marking a significant step toward expanding indigenous LNG capacity.

NNPC Ltd. noted that its projections are based on current expectations and assumptions, insisting that actual outcomes may differ  due to various known and unknown risks, including market conditions, crude oil and gas price fluctuations, regulatory changes under the Petroleum Industry Act, global economic trends, operational challenges, and other factors beyond its control.