NNPC, BUA Partner To Boost Domestic Gas Utilisation

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NNPC, BUA Partner To Boost Domestic Gas Utilisation

As part of efforts to enhance domestic gas utilisation for businesses and industries, NNPC Gas Marketing Limited (NGML) and BUA Group have signed a shareholders’ agreement on Tuesday for the development of a Mini-LNG Plant in Ajaokuta, Kogi State.

The 45mmscf mini-LNG plant is expected to boost domestic gas utilisation.

The signing ceremony, held at NGML’s headquarters in Abuja, was attended by BUA Group Executive Director, Kabiru Rabiu, and Group Chief Legal Officer, Oluseye Alayande, alongside NGML’s management team, led by Justin Ezeala.

This project is set to drive economic growth, support the gas-to-power initiative, and contribute significantly to Nigeria’s evolving energy landscape.

Nigeria’s domestic gas needs are high and envisaged to rise rapidly. majority of Nigeria’s gas is used for power generation and industry.
In 2023, Nigeria’s natural gas demand was around 18.7 billion standard cubic meters, and the figure, according to the Nigerian Upstream Petroleum Regulatory Commission will increase by 16.6% annually by 2030. 

The NUPRC said there was a daily shortfall of 3.1 billion cubic feet, as the supply may not keep up with demand.

As of 2023, Nigeria had proven natural gas reserves of around 5.9 trillion standard cubic meters. 

Nigeria has the largest gas reserve in Africa and is the eighth largest in the world. 

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