Mini-LNG plant will transform northern industries –Gasnexus, NGML

Access to reliable, affordable, and clean energy remains one of Nigeria’s most critical development challenges. With over 90 million Nigerians lacking access to electricity—a disproportionately high number of whom reside in the northern region—the country’s path to industrialisation and economic prosperity has been significantly hindered. High energy costs, dependence on expensive and polluting diesel, and […]

Access to reliable, affordable, and clean energy remains one of Nigeria’s most critical development challenges.

With over 90 million Nigerians lacking access to electricity—a disproportionately high number of whom reside in the northern region—the country’s path to industrialisation and economic prosperity has been significantly hindered.

High energy costs, dependence on expensive and polluting diesel, and a fragmented national grid have all contributed to stagnation in northern Nigeria’s industrial sector.

However, to change the narrative, Gasnexus, a subsidiary of Axxela, in partnership with NNPC Gas Marketing Limited (NGML), has launched the development of a small-scale Liquefied Natural Gas (LNG) plant in Ajaokuta, Kogi State.

The project is strategically located at the intersection of northern Nigeria’s industrial corridor, unlocking access to cleaner, cheaper, and more reliable energy.

The Ajaokuta Mini-LNG plant, launched under the national theme “From Gas to Prosperity: Catalysing Nigeria’s Economic Growth,” reflects a broader government and private sector push towards a gas-powered economy.

The plant’s first phase involves the construction of a 7.5 MMSCF/D facility, which will process natural gas sourced from the Oben-Ajaokuta pipeline—one of the critical arteries in Nigeria’s expanding gas infrastructure network.

This initiative is designed to serve industrial clusters and commercial hubs outside the existing pipeline grid, particularly in embedded and captive power generation markets. For industries currently relying on diesel, LPFO, and other crude oil derivatives, LNG offers a cost-effective and environmentally sustainable alternative.

By reducing energy expenditures and improving operational efficiency, businesses can scale with greater confidence.

In addition to economic benefits, the environmental upside is compelling. LNG’s cleaner combustion profile supports Nigeria’s Energy Transition Plan (ETP) and climate goals, with Axxela already recording over 703,000 tonnes of CO₂eemissions avoided through its gas operations. The new Ajaokuta plant is expected to significantly amplify these results, contributing to Nigeria’s path towards net-zero emissions by 2060.

Bridging the Infrastructure Gap: A Historical Context

The persistent energy disparity between southern and northern Nigeria can be traced back to the historical development of Nigeria’s gas infrastructure.

Originally designed to serve the oil-producing regions, Nigeria’s gas networks evolved in fragmented silos, with the majority of project-centric investments concentrated in the south of the country. This created three distinct systems across the country:

• The Western Domestic System, anchored by the Escravos-Lagos Pipeline System (ELPS) and the West African Gas Pipeline (WAGP), supplies Lagos and parts of the West African subregion. It is primarily fed by the Utorogu, Escravos, and Oben gas plants.
• The Eastern Domestic System, which supports domestic power and industrial users in Rivers, Akwa Ibom, and Abia states, is largely supplied by gas fields located within the Niger Delta. It plays a vital role in sustaining industries in the South East but remains disconnected from markets in the North and West.
• The Export System, made up of the Onshore Gas Transmission System (GTS) and the Offshore Gas Gathering System (OGGS) channels gas to the Nigeria LNG (NLNG) facility in Bonny Island for export. This system has been instrumental in earning foreign exchange but offers limited spillover benefits to domestic energy supply—particularly in the underserved north.

 

Public-Private Synergy for Industrial Revival

The Gasnexus-NGML mini-LNG project exemplifies the synergy between government policy and private-sector innovation. While public sector entities such as NNPC provide enabling infrastructure and strategic policy support, private companies like Axxela bring the investment, technology, and operational expertise required to scale solutions effectively.

Managing Director of Axxela Gas Midstream Infrastructure, Franklin Umole, while speaking on the initiative said, “The demand for cleaner energy, especially in underserved markets currently relying on other traditional dirty fossil fuels, presents a substantial market opportunity.

“With the central and strategic location of the plant in Ajaokuta, we are committed to expanding access to reliable and affordable natural gas to a wider range of customers across the northern region. With the groundbreaking, we lay the foundation for a future that fuels growth for our industries and economy and reinforces our commitment to sustainable energy solutions. We are not just building infrastructure – we are shaping the future of energy.”

With over 300km of natural gas pipelines built and more than 200 industrial and commercial customers across Nigeria, Axxela remains a key player in the country’s industrial transformation story.

As Nigeria navigates its energy transition, projects like the Gasnexus-NGML mini-LNG plant represent scalable, high-impact interventions that meet immediate energy needs while building towards long-term sustainability. For northern Nigeria, this initiative marks a critical turning point—a transition from energy poverty to energy prosperity.