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NNPC pushes bold gas strategy, promotes industrial parks, CNG, ease of doing business

Faith Fatima Mohammed by Faith Fatima Mohammed
July 24, 2025
in News
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NNPC pushes bold gas strategy, promotes industrial parks, CNG, ease of doing business
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The Nigerian National Petroleum Company Limited (NNPC Ltd.) has reiterated its commitment to unlocking the vast economic potentials of gas infrastructure across Nigeria, as the company pushes for stronger partnerships with state governments, gas producers, and private investors.

Speaking at a high-level forum focused on the update of Ajakuta-Abuja-Kaduna Pipeline Progress and commercial opportunities in gas distribution in Abuja, Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd) emphasized the crucial role of gas pipelines and infrastructure in driving industrial growth and energy efficiency across the country. Drawing parallels with global examples such as the Transco gas pipeline in the United States, which spans 16.9 kilometers across 12 states and supplies over 250 million standard cubic feet of gas per day to Henry Hub, the official noted that Nigeria is well-positioned to replicate and surpass such models.

“Our domestic gas arena is not lagging behind. From power plants to LNG facilities, methanol production, and gas-based industries, the economic spin-offs run into billions of dollars,” Ojulari said.

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Highlighting the Nigerian Gas Marketing Limited (NGML) and its partners’ work in Kano, he pointed to at least six industrial parks in the region currently starved of gas supply. These parks, filled with industries yearning for improved operational efficiency, represent low-hanging fruits for impactful intervention.

NNPC is also spearheading the development of new industrial parks in Karu (Nasarawa State), Kano, and Gwagwalada (Abuja), the latter tied to the company’s Gwagwalada power plant. The initiative in Karu, for instance, is being structured around the emerging lithium mining sector, which is highly energy-intensive.

“NNPC is not sitting on the sidelines. We are building and promoting industrial hubs because we believe gas is the fuel of economic development. Our message is clear: NNPC is open for business and collaboration. We’ve moved from outdated commercial models to win-win partnerships,” the official stressed.

In the power sector, the Abuja Independent Power Project (IPP) is slated for commissioning by the end of next year, while early works are ongoing on the Kaduna and Kano IPPs. Discussions are also in motion around gas-based industries and power trading models.

A strong call was made to stakeholders to harness the potentials along the Ajaokuta-Kaduna-Kano (AKK) gas corridor, with special attention to emerging opportunities in Compressed Natural Gas (CNG) and Mini-LNG.

“We must take gas-based industries seriously along the AKK corridor. This isn’t just talk—it’s a call to action for private sector players to collaborate on real opportunities,” Ojulari stated.

The executive Vice President, Gas, Power and new Energy, Engr Olalekan Ogunleye gave a heartfelt shoutout to gas producers present at the event, reaffirming that their role is central to the realization of Nigeria’s gas potential.

“As we test new commercial constructs for the Gas-Based Industries (GBI) on a win-win buyer and seller basis, we invite gas producers to stay engaged and focused. The AKK project is coming, and so are opportunities tied to CNG and Mini-LNG.”

Ogunleye shared a touching anecdote from an Uber driver who had experienced a drastic 60% reduction in operational costs since switching to CNG, highlighting the real-world impact of the NNPC-led push for alternative fuels.

Read also:

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  • NNPC remits N6.96tn into federation account, earns N905bn in June
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“CNG is real. Unlike previous efforts, this time it’s different, because we have political will from the President, the Minister, and NNPC leadership. We are united in our commitment to ease the burden on Nigerians.”

He revealed that private sector interest in CNG auto stations has surged, with many investors seeking collaboration, not funding. “People are coming to us day and night, ready to invest. That’s why we are hosting a dedicated Auto CNG event tomorrow.”

NNPC’s key mandate now includes de-risking gas supply for investors. “If you’re investing in the CNG value chain, NNPC guarantees gas supply. It’s that simple.”

The two-day event also centered on recommendations to improve Nigeria’s business climate, especially in the gas and energy sectors. NNPC acknowledged the company’s own role and responsibility in improving the ease of doing business.

“We’re not just pointing fingers. We’re pointing at ourselves too. Across NGML and NGIC, we’ve launched initiatives aimed at simplifying business processes. But we need feedback. Speak to us, tell us your pain points.”

He urged state governments, especially those hosting gas infrastructure and industrial parks, to establish one-stop shops to streamline land acquisition, licensing, and regulatory processes.

“Ease of doing business must not be a slogan. It must become a reality.”

As Nigeria continues to position gas as a central pillar of economic transformation, NNPC is making it clear: collaboration, innovation, and investor-friendly policies are the path forward.

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