NNPC Ltd. signs two major agreements to deliver LNG to domestic and international markets
Nigeria’s state-owned oil company, NNPC Ltd., has signed two major agreements to deliver liquefied natural gas (LNG) to the domestic and international markets, amid push to boost natural gas utilization in the country and enhance Nigeria’s gas revenue. The agreements were signed during two separate ceremonies held on the sidelines of the ongoing United Nations Climate Change Conference (COP28).
The first agreement was signed between NNPC Ltd. and Wison Heavy Industry Co. Ltd., a Chinese company, for the development of a floating LNG project in Nigeria that will target the international LNG market. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.
The second agreement was signed between NNPC Prime LNG Ltd., an arm of NNPC Trading Ltd., and SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project that will target the domestic LNG market.
The Small-Scale LNG (SSLNG) Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, aims to ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.
“We view both projects as having a significant impact across the country as they are central to the commercialisation of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets,” EVP Gas, Power & New Energy at NNPC Ltd, Olalekan Ogunleye, said in an official statement.
“This is also in line with NNPC Management’s efforts to deliver on Mr. President’s gas and power aspirations across the country.”
Nigeria is among the world’s largest natural gas producers, but the country has faced challenges in monetizing its gas reserves due to inadequate infrastructure and investment. The agreements signed by NNPC Ltd. are expected to enhance natural gas utilization in the country, boost Nigeria’s gas revenue, create job opportunities, and contribute to the nation’s economic growth and development.
The first agreement was signed between NNPC Ltd. and Wison Heavy Industry Co. Ltd., a Chinese company, for the development of a floating LNG project in Nigeria that will target the international LNG market. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.
The second agreement was signed between NNPC Prime LNG Ltd., an arm of NNPC Trading Ltd., and SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project that will target the domestic LNG market.
The Small-Scale LNG (SSLNG) Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, aims to ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.
“We view both projects as having a significant impact across the country as they are central to the commercialisation of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets,” EVP Gas, Power & New Energy at NNPC Ltd, Olalekan Ogunleye, said in an official statement.
“This is also in line with NNPC Management’s efforts to deliver on Mr. President’s gas and power aspirations across the country.”
Nigeria is among the world’s largest natural gas producers, but the country has faced challenges in monetizing its gas reserves due to inadequate infrastructure and investment. The agreements signed by NNPC Ltd. are expected to enhance natural gas utilization in the country, boost Nigeria’s gas revenue, create job opportunities, and contribute to the nation’s economic growth and development.
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