The Presidential Compressed Natural Gas Initiative has signed a Memorandum of Understanding with LNG Arete to construct a 27.3 million dollars liquefied natural gas plant with a processing capacity of 7 million standard cubic feet per day.
This project, according to the parties, will aid the transportation of gas to other parts of the country, especially the North.
Nigeria lacks sufficient pipelines, processing plants, and distribution networks to efficiently transport and utilize gas for domestic consumption
A significant portion of Nigeria’s gas is flared due to insufficient capturing infrastructure, while much of the processed gas is exported as LNG rather than used domestically.
The Federal Government of Nigeria has been actively pursuing strategies to enhance the utilization of the nation’s abundant natural gas resources, aiming to stimulate economic growth, bolster industrial development, and improve power generation.
As part of that effort, it is today signing an MOU with this private sector to boost the movement of gas from its original point to other parts of Nigeria especially the northern parts of the country for utilization.
The partnership marks another step toward reducing gas flaring and improving domestic energy access.
With Nigeria’s push toward a gas-powered economy, initiatives like this are critical in bridging infrastructure gaps and ensuring more Nigerians benefit from the country’s vast natural gas reserves.
