Federal Government Commissions First LCNG Plant in North-East

The federal Government commissioned Nigeria’s first Liquefied and Compressed Natural Gas (LCNG) plant in Maiduguri, Borno State on June 3, 2025, a $50 million facility to boost energy access in the North-East.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, flagged off the project, operated by the Nigerian National Petroleum Company Limited (NNPCL), with a capacity to produce 10,000 metric tonnes of LNG and 5 million standard cubic feet of CNG daily. The plant, part of Tinubu’s $2 billion gas expansion plan, aims to power 50,000 homes and fuel 10,000 CNG vehicles annually, reducing petrol dependency by 20% in Borno.

The facility, built on 10 hectares, includes a 5 MW solar backup and employs 200 locals, 70% youth, addressing 50% unemployment in the region. Ekpo highlighted CNG’s ₦230 per kg cost versus petrol’s ₦1,200 per liter, projecting ₦100 billion in savings for North-East consumers by 2027. The plant supports 600 converted tricycles in Maiduguri, with plans for 2,000 by 2026. Critics, including 40% of local traders, cite 80% gas distribution gaps, as 1,000 rural communities lack access.

Boko Haram’s 2024 attacks, disrupting 10% of gas pipelines, pose risks, prompting 200 military escorts. The commissioning, attended by 5,000 residents, aligns with Nigeria’s 206 trillion cubic feet gas reserves, but 60% flaring losses demand $1 billion in upgrades. The LCNG plant, first of 10 planned nationwide, signals Nigeria’s energy transition, though 120 million energy-poor citizens highlight scale-up challenges.