NNPC Acquires 15% Shares in Company Selling Fuel Priced at N200 to Reduce Costs
- The Nigerian National Petroleum Company Limited (NNPC) has accepted a 15% equity in Starzs Gas Limited
- The company disclosed that the deal will allow it to supply the company with compressed natural gas (CNG) via its pipeline
- Starzs Gas Limited is owned by a Nigerian billionaire investor, Greg Ogbeifun and the new facility would come on stream in the first quarter of 2026
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian National Petroleum Company Limited (NNPC), via its subsidiary, NNPC Gas Marketing Limited, has accepted a 15% stake in Starzs Gas’ two million standard cubic feet per compressed natural gas mother station in Ughelu, Delta State.
As part of the partnership, NNPC has agreed to guarantee gas supply to the facility on a competitive pricing model.
Source: UGC
NNPC to partner with CNG marketing firm
It will allow its logo to stand alongside Starzs Gas to show the partnership.
Starzs Gas is reportedly owned by Nigerian billionaire and investor, Greg Ogbeifun.
The deal was announced during the project’s groundbreaking ceremony by the Managing Director of NNPC Gas Marketing Limited, Justin Ezeala. He represented the Minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo.
The facility will be inaugurated in the first quarter of next year and will be expanded after 18 months.
The project aligns with the Nigerian government’s commitment to reducing the country’s carbon emissions by adopting CNG as an alternative to petrol.
NNPC to supply Starzs with CNG via pipelines
After completion, it will undertake industrial CNG supplies, power-generation-based supplies, and general natural gas distribution to off-grid satellite locations without pipeline infrastructure, supported by virtual pipelines.
According to Punch reporting, the project’s first phase will cost about $7 million.
The vice chairman of Starzs, Iroghama Ogbeifun, stated that the facility is setting the stage for a future powered by clean energy and for further development.
She noted that the project aligns with the Nigerian government’s pursuit of the decade of gas initiatives and supports the Presidential CNG (Pi-CNG) initiative mandated to deepen CNG use as auto fuel and reduce carbon emissions.
Starzs offers 15% equity to NNPC
She unveiled the strategic partnership with NNPC, saying the national oil company was offered and agreed to accept the 15% equity in the project.
The MD of NGML, Ezeala confirmed the partnership with Starzs, saying the state-owned oil firm showed the way in the private sector’s response to the Nigerian government’s call for private investment in the country’s gas ecosystem.
According to Ezeala, NNPC will supply gas to the facility via NNPC gas company’s pipeline.
FG pushes for CNG adoption
The federal government has been aggressively vocal about its commitment to pivoting to CNG after removing subsidies on petroleum products in 2023.
The government launched several CNG initiatives to help Nigerians seamlessly move away from petrol-powered vehicles.
It launched free CNG conversion centres nationwide for commercial and private vehicle owners.
However, the scheme has experienced a sluggish run due to insufficient conversion kits and centres, leaving the country still heavily reliant on petrol.
NNPC begins power-generating project
Meanwhile, Legit.ng earlier reported that the NNPC has disclosed that it currently operates the Maiduguri Emergency Power Plant as a contribution to Nigeria’s power sector.
The oil company’s spokesman, Olufemi Soneye, made this known at an engagement with some northern artists in Abuja.
Soneye asked them to use their positions to advocate for protecting national assets, especially those managed by the NNPC.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
