Over $450m has been invested in CNG sector — Minister
By Matthew Denis
The Minister of State for Petroleum Resources on the Gas Sector, Hon. Ekperikpe Ekpo, has revealed that over $450 million has been invested in Nigeria’s Compressed Natural Gas (CNG) sector, focusing on infrastructure, conversion centres, and platforms.
He made this statement during his opening remarks at the Nigeria Content Development and Monitoring Board (NCDMB) conference held in Bayelsa on Tuesday.
The Minister emphasized that the theme of this year’s conference, “Advancing Local Content for a Sustainable Energy Future,” is not only a call to action but also a reaffirmation of Nigeria’s commitment to utilising local capabilities to enhance energy security, economic growth, and environmental sustainability.
He further highlighted that the Ministry of Petroleum Resources, under the leadership of President Ahmed Tinubu, is aligning its policies with the aspirations of Nigerians. The goal is to ensure that local content remains central to the nation’s energy strategy.
The Minister said, “Some of our policy directions that impact local content include: Deepening Domestic Gas Utilisation. Through the Decade of Gas Initiative, we are accelerating the development of critical gas assets and infrastructure to boost production and distribution of gas across the country, as well as for export purposes.”
He noted that, in the past 12 months, two critical gas projects with combined volumes of 600 MMSCF/day have been completed. These projects include the SEPLAT ASSA North plant (300 MMSCF/Day) and the SPDC Ohaji South plant (300 MMSCF/Day). Furthermore, final investment decisions (FID) have been made for additional projects expected to guarantee 420 MMSCF/day of natural gas to existing production. These include the SPDC Iseni Project (90 MMSCF/Day) and the TOTAL Ubeta Project (330 MMSCF/Day).
“While the SEPLAT Assa North and SPDC Ohaji South gas plants are already commissioned, key pipeline infrastructure projects are progressing. The OB3 Gas Pipeline, a 48”/36″x 130km pipeline running from the Obiafu-Obrikom plant to Oben, is at 97% completion, while the AKK Gas Pipeline, a 40″x 614 km pipeline from Ajaokuta to Kaduna to Kano, is 77% complete,” the Minister added.
He pointed out that both the OB3 and AKK pipelines present significant opportunities for local businesses involved in construction, maintenance, operations, and security services. In addition, they offer prospects for gas-based sectors such as gas-to-power, gas-to-fertiliser, and other manufacturing businesses along their extensive corridors.
Regarding the CNG sector, the Minister reaffirmed that over $450 million has been invested in the development of infrastructure, conversion centres, and platforms. He explained that 65 Mother Stations are in various stages of development, while 88 new Daughter Stations are also under development with 26% of the work completed. Additionally, over 145 new Conversion Centres have been deployed, with 90 more under construction. More than 150,000 conversion kits have been acquired nationwide, and 34,000 conversions have been carried out, among other advancements.
On the support for indigenous manufacturing, the Minister said, “We are working closely with the NCDMB to ensure that Nigerian companies are prioritised in the manufacture of components for pipelines, refineries, gas facilities, CNG stations, conversion centres, training facilities, and instructors.”
He also revealed that through the Midstream, Downstream, and Gas Infrastructure Fund (MDGIF), the administration of President Tinubu has empowered six local companies within the gas value chain with a total of 122 billion Naira. These funds represent the Federal Government’s equity stake in these businesses, aimed at de-risking investments and accelerating the completion of gas midstream and downstream projects to facilitate the delivery of gas to end users, thereby boosting natural gas consumption and utilisation across the country.
“I must commend the NCDMB for its visionary Nigerian Oil and Gas Parks Scheme (NOGaPS). These parks play a crucial role in promoting innovation, industry, and job creation. However, for these parks to reach their full potential, I urge the NCDMB to prioritise collaborations with businesses that produce key gas components, such as compressors, valves, and fittings,” the Minister added.
He also praised the NCDMB’s investments in gas-related projects, including support for compressed natural gas (CNG) initiatives, modular gas processing plants, LPG cylinder manufacturing plants, LPG depots, terminals, storage, and bottling plants, gas gathering facilities, as well as smart gas and smoke detector alarm services.
“The Board must ensure that these parks are made fully operational by the third quarter of 2025 at the latest,” he concluded.
