NGML signs deal with CCETC Suk Power to boost gas supply

As part of a deliberate move to strengthen its role in Nigeria’s gas value chain, the NNPC Gas Marketing Limited (NGML) has signed a landmark Natural Gas Sale and Purchase Agreement (GSPA) with CCETC Suk Power Limited to facilitate the delivery of up to 44 million standard cubic feet per day (MMscf/d) of natural gas.

The signing ceremony, which took place on Thursday in Abuja, was held on the sidelines of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Business Development Forum, themed “AKK Pipeline Progress Update and Opportunities Engagement.”

The signing, which is in addition to the existing Gas Supply Agreement executed with GasHub Nigeria Limited, is aimed at boosting power generation and supporting LNG production capacity.

According to NGML, the expanded gas supply capacity will not only bolster domestic energy utilisation but also stimulate industrial growth and support sustainable development, particularly across Northern Nigeria, which stands to benefit immensely from the AKK pipeline corridor.

The agreement is also seen as a major step forward in achieving the objectives of the Decade of Gas initiative, which seeks to harness Nigeria’s vast natural gas reserves to drive energy transition, economic diversification, and job creation.

Speaking at the event, the Group Chief Executive Officer (GCEO), Mr Bayo Ojulari, described the gas pipeline project as a strategic economic catalyst for Nigeria, saying it would reshape the landscape through power generation and industrial growth.

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He said, “The pipeline will supply up to 2.2 billion standard cubic feet of gas a day. Foil in power plants in Abuja, Kaduna, Kano, and others. This will revive industries, especially in the Northern Nigeria, where I grew up. The AKK pipeline supports Nigeria’s decade of gas initiatives aimed at reducing reliance on oil and expanding gas-based industries. It enhances energy equality by extending gas infrastructure to the northern region, which have historically lagged behind in access to energy.”

Ojulari also revealed that over 1,900 skilled and semi-skilled Nigerians have already been employed directly on the project.

“Thousands more will be employed once the pipeline becomes operational due to economic spin-offs that will occur all across the sectors. Transportation and Agriculture, the pipeline with deepened compressed natural gas adoption for transport, lowering fuel costs and emissions. Transportation of food from the north to other regions of the country and sub-Saharan Africa,” he added.

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