NNPC Promotes CNG Investment as AKK Pipeline Nears First Gas Delivery

The Nigerian National Petroleum Company Limited (NNPC) and industry stakeholders are accelerating efforts to attract investors ahead of the anticipated first gas delivery from the Ajaokuta–Gwagwalada segment of the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, expected by July 2026.

The AKK project, a critical part of Nigeria’s gas infrastructure, is designed to expand domestic supply, support power generation, and drive industrial growth in northern Nigeria. Officials are confident that completion will unlock significant economic opportunities along the corridor.

At a recent stakeholders’ workshop on mini-LNG and L-CNG infrastructure in Abuja, the Executive Vice President, Gas, Power, and New Energy at NNPC, Olalekan Ogunleye, highlighted the urgency for investment in compressed natural gas (CNG) infrastructure, stating that Nigeria has transitioned from an oil-centric to a gas-first economy.

“For decades, Nigeria was described as an oil nation with some gas. That narrative is now permanently retired,” Ogunleye said. “Through the NNPC Gas Master Plan and the Decade of Gas agenda, Nigeria is strategically, commercially, and operationally a gas-first nation.”

He disclosed ambitious targets for national gas production: 10 billion cubic feet per day (bcf/d) by 2027 and 12 bcf/d by 2030, citing Nigeria’s over 210 trillion cubic feet of proven reserves as a strong foundation for industrial and energy expansion. Domestic supply has already surpassed 2 bcf/d, signaling readiness for large-scale utilisation.

The CNG sector has seen rapid growth, with over $200 million in private investments and more than 300 vehicle conversion centres nationwide. NNPC aims to convert 1 million vehicles to CNG by 2027, reducing fuel imports, lowering transport costs, preserving foreign exchange, and improving macroeconomic stability.

Portland Gas Limited’s proposed mini-LNG and L-CNG station in Gwagwalada, Abuja, was highlighted as a cornerstone project for industrial growth. NNPC will supply piped natural gas to the facility, which will serve as a “mother station” for mobile refuelling units and retail outlets.

Ogunleye noted that the Ajaokuta–Gwagwalada pipeline segment, expected to deliver first gas by July 2026, would transform energy supply in northern Nigeria, powering industry, enabling auto-CNG adoption, and supporting mini-LNG development.

“At the heart of our midstream transformation is the 614-kilometre AKK pipeline. Its completion will not just release gas; it will release productivity, industrial growth, and economic renewal,” he said.

Ismaeel Ahmed, represented by Tosin Coker, underscored that Nigeria is building a competitive gas economy that reduces transport costs and stimulates manufacturing. He emphasised that policy alone is insufficient; visible infrastructure, stations, conversion centres, and job creation are key to transformation.

Mini-LNG and L-CNG infrastructure addresses accessibility, scalability, and distribution challenges by reaching emerging demand centres, supporting industrial clusters, and promoting regional economic growth. The government is enhancing regulatory frameworks, safety standards, and certification processes to de-risk investments.

Michelle Ejiofor, Chief Commercial Officer of Portland Gas, said the Gwagwalada project bridges stranded gas to end users, lowering costs and promoting cleaner energy adoption. The initiative aims to catalyse partnerships among government, investors, regulators, and technology providers to accelerate decentralised gas infrastructure.

Nigeria’s push for CNG and gas-based energy solutions aligns with broader energy transition strategies, following petrol subsidy removal and rising fuel costs. Expanding pipelines, mini-LNG facilities, and virtual gas distribution networks is critical to improving industrial competitiveness, energy security, and macroeconomic resilience.