NNPC: Expanding Its CNG Footprint with Key Acquisition
Deal News | Apr 28, 2025 | EIN
NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company Limited, is pursuing a strategic acquisition to advance Nigeria's Compressed Natural Gas (CNG) infrastructure. The acquisition involves a 5.2 million standard cubic feet per day CNG facility from Gas Network Services Limited (GNSL), announced by the Federal Competition and Consumer Protection Commission. This transaction promises to expand NGML’s presence in CNG distribution, enhancing accessibility and affordability. It's closely tied to the Presidential Compressed Natural Gas Initiative aimed at mitigating fuel subsidy removal effects. The acquisition supports sustainable energy, broadening CNG's reach in transport and commercial sectors, amidst government efforts to bolster CNG capacity, evidenced by a $27.3 million gas plant project launching in northern Nigeria.
Sectors
- Energy
- Natural Gas
Geography
- Nigeria – The entire transaction and strategic initiative are centered in Nigeria, involving national programs and infrastructure expansions aimed at improving the country's energy landscape.
Industry
- Energy – The article focuses on the energy sector, specifically within Compressed Natural Gas (CNG) infrastructure development and its expansion in Nigeria.
- Natural Gas – The industry classification is relevant as the acquisition involves CNG facilities, emphasizing the role of natural gas as a cleaner energy source.
Financials
- $27.3 million – Value of the Memorandum of Understanding signed for a gas plant project as part of CNG infrastructure development in Nigeria.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NNPC Gas Marketing Limited (NGML) | Acquirer | Company | A subsidiary of Nigerian National Petroleum Company Limited, responsible for marketing and distribution of natural gas. |
| Gas Network Services Limited (GNSL) | Target company | Company | Proprietor of the CNG facility being acquired, specializing in virtual pipeline solutions for natural gas delivery. |
| Federal Competition and Consumer Protection Commission (FCCPC) | Regulatory Authority | Government | The government body providing notice of the acquisition and assessing its market impact. |
| Nigerian National Petroleum Company Limited (NNPC) | Holding Company | Company | The parent company of NGML, involved in the country's broader oil and gas industry. |
| LNG Arete Ltd. | Partner in related initiative | Company | A company involved in a memorandum with the Nigerian government for a gas plant project linked to CNG infrastructure expansion. |