NNPC, Nigeria’s state-owned oil corporation, has taken significant strides in promoting natural gas utilisation and boosting the country’s gas revenue.
In two separate signing ceremonies held during the United Nation’s Climate Change Conference, NNPC Ltd signed agreements to deliver liquefied natural gas (LNG) to both the domestic and international markets.
The first agreement was a Memorandum of Understanding (MoU) signed between NNPC Ltd and Wison Heavy Industry Co. Ltd, a Chinese company, for the development of a floating LNG project in Nigeria. This project aims to target the international LNG market, and the parties involved have agreed to collaborate on charting a roadmap for project development and investment decisions.
The second agreement involved NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, signing a Supply, Installation, and Commissioning Agreement with SDP Services, an independent oil and gas company. This agreement is focused on a small-scale LNG (SSLNG) project, which will cater to the domestic LNG market.
The project, located in Ajaokuta, Kogi State, is expected to be operational by December 2024 and will ensure the efficient supply of LNG to auto-gas/compressed natural gas (CNG) and industrial/commercial customers across Nigeria.
Speaking after the signing ceremony, Olalekan Ogunleye, the Executive Vice President of Gas, Power and New Energy at NNPC Ltd, expressed the company’s commitment to delivering gas to industries nationwide and accelerating gas commercialisation efforts through the floating LNG project. He emphasised the significance of these projects in commercialising Nigeria’s abundant gas resources and generating much-needed foreign revenue.
Similarly, Lawal Sade, the Managing Director of NNPC Trading Ltd, highlighted the importance of the SSLNG project in promoting LNG utilisation domestically and supporting the growth of auto-gas initiatives across Nigeria. Sade projected a time frame of 12 months for project execution and commissioning, with an expected delivery of approximately 420 tonnes per day of LNG to the domestic market.
The partners involved in both projects expressed their enthusiasm for the agreements and pledged to work closely with NNPC Ltd to ensure timely and cost-effective project delivery.
These initiatives signify Nigeria’s commitment to leveraging its gas assets, contributing to the country’s economic growth, and fulfilling President Muhammadu Buhari’s gas and power aspirations nationwide.
