Tag: CNG

Nigeria’s private sector is driving the expansion of the country’s downstream gas infrastructure in partnership with state-owned NNPC Ltd, with companies like Tetracore Energy Group and Axxela recently launching new compressed natural gas (CNG) and liquefied natural gas (LNG) facilities. Tetracore Energy Group has commissioned a new CNG facility in Ogun State, with a capacity of 3.1 million standard cubic feet per day (mmscf/d). The facility will support gas availability along Nigeria’s Western-Southern corridor, where some of the country’s biggest industrial clusters are located. The facility is expandable to 6.2 mmscf/d, providing room for expansion as demand for gas grows. In addition, Tetracore broke ground on a small-scale LNG plant, which will supply gas to industrial and power customers in Nigeria’s Southwest, South-South, Southeast, and Northern markets. “Tetracore is investing approximately $40 million into the future LNG plant where we are breaking ground today, with commissioning expected at the same time next year,” CEO of Tetracore Energy Group, Kunle Williams, said during a grand ceremony in Ogun State on June 7th. Last week, NNPC and Axela commissioned a CNG plant in Lagos, with a capacity to deliver 5.2 mmscf/d of gas per day, serving around 3,700 cars daily and supplying gas to industries and other companies. The partners also announced plans to build six additional CNG service plants to expand access to alternative fuel for cars and industries. Tetracore and Axxela are representative of increased private sector participation within Nigeria’s midstream and downstream gas space. Seplat Energy, one of the country’s leading independent operators, is currently commissioning the 300 MMscf/d ANOH gas plant, while NIPCO Gas and NNPC have agreed last year to invest in the development of several CNG stations across the country,. The private sector’s investment in gas infrastructure is crucial for Nigeria’s energy and industrialization landscape, as it enables the efficient utilization of natural gas for various sectors, including transportation, power generation, and industrial applications. Nigeria is pivoting toward natural gas as an alternative fuel after eliminating a widely used but expensive petrol subsidy, resulting in a sharp increase in pump prices. The government aims to reduce costs and promote clean energy adoption in Africa’s leading oil-exporting nation by transitioning to gas.