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Gasnexus, partners break ground for Ajaokuta mini-LNG

Sopuruchi Onwuka

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A leading private developer of natural gas and captive power solutions in Nigeria, Axxela, has declared participation in the mini-LNG consortium that kicked off plant development in Ajaokuta, Kogi State.

The company which is co-owned by Helios Investment Partners LLP and Sojitz Corporation stated that its strategic business unit, Gasnexus, is in partnership with the NNPC Gas Marketing Limited (NGML) and other partners for the groundbreaking of the small-scale Liquefied Natural Gas (LNG) plant.

Already, Axxela Limited is a designated natural gas shipper on the West African Gas Pipeline (WAGP), and a member of the West African Power Pool (WAPP); it also delivers natural gas to about 200 industrial and commercial customers via over 360km of natural gas pipeline infrastructure.

The company says it provides unique energy solutions primarily through its subsidiaries, including Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.

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With a mantra on using gas to catalyse Nigeria’s economic growth, the projects will see development of five mini-LNG plants in Ajaokuta which is emerging a critical gas hub in the domestic market.

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Axxela stated that the initiative is part of the government’s ongoing efforts to drive sustainable energy development and economic transformation in Nigeria.

The Gasnexus/NGML 20MMSCFD small-scale LNG plant will be developed in phases, starting with the development of a 7.5 MMSCF/D facility that will utilise natural gas from the existing Oben-Ajaokuta pipeline to serve stranded customers in the North and other parts of the region.

Speaking at the event, Franklin Umole, Managing Director of Axxela Gas Midstream Infrastructure emphasised the significance of the project. “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. Today, we lay the foundation for a future that not only fuels growth for our industries and economy but also reinforces our commitment to sustainable energy solutions. We are not just building infrastructure – we are shaping the future of energy”.

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In his remarks, HRM Justin Ezeala, Managing Director of NNPC Gas Marketing Limited (NGML), said, “This groundbreaking event marks an important milestone for us, reflecting our shared goal of ensuring access to cleaner energy for Nigerians. Our partnership with Gasnexus is a crucial step toward unlocking the full potential of natural gas as a catalyst for industrial growth and energy security. By leveraging our collective strength, we won’t just deliver LNG, we will empower businesses and drive economic transformation across the region.”

Upon completion, the small-scale LNG plant will expand natural gas access to industrial and commercial customers outside of the existing pipeline network across Northern Nigeria and environs. The project will also support the Federal Government’s flare-down initiative and create new opportunities for gas commercialisation.

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