The Nigerian National Petroleum Company Limited (NNPC) revealed on Tuesday that it has successfully finalized two significant agreements aimed at advancing the delivery of Liquefied Natural Gas (LNG) to both domestic and international gas markets.
In an official statement signed by Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, the national oil company emphasized that these agreements are part of its strategic efforts to enhance the utilization of natural gas in Nigeria and boost the country’s gas revenue.
The announcements were made during separate signing ceremonies held on the sidelines of the ongoing United Nations Climate Change Conference (COP28).
According to NNPC, the first agreement was signed with Wison Heavy Industry Co. Ltd, a Chinese company, focusing on the development of a floating LNG project within Nigeria, with an eye on the international LNG market. The Memorandum of Understanding (MoU) for the Floating LNG project was signed by Olalekan Ogunbayo, the Executive Vice President of Gas, Power & New Energy at NNPC, and Kai Xu, the Managing Director of Wison Ltd. Both parties committed to collaborating on a project roadmap leading to an investment decision.
In a parallel development, NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, signed a Supply, Installation, and Commissioning Agreement with SDP Services, an independent oil and gas company. This agreement pertains to a 421 tonnes per day LNG project, focusing on the domestic LNG market.
The Small-Scale LNG (SSLNG) project agreement was signed by Lawal Sade, the Managing Director of NNPC Trading Ltd, and Abhinav Modi, the Managing Director of SDP Services Ltd. The SSLNG project is slated to be situated in Ajaokuta, Kogi State, Central Nigeria, and is anticipated to commence operations by December 2024. It aims to efficiently supply LNG to Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide.
Following the signing ceremony, Olalekan Ogunleye, the EVP Gas, Power & New Energy at NNPC, expressed the company’s commitment to delivering gas to industries nationwide. He highlighted the potential impact of both projects on commercializing Nigeria’s abundant gas resources and contributing to the country’s foreign revenue.
Ogunleye stated, “We see both projects as having enormous impact all over the country because they are central to the commercialization of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets.”
Lawal Sade, the MD NNPC Trading Ltd, further emphasized the significance of the SSLNG Project in promoting the domestication of LNG utilization. He outlined a timeframe of 12 months from execution to project commissioning, with an expected delivery of about 420 tonnes per day of LNG into the domestic market.
Both partners expressed their enthusiasm about the agreements and pledged to collaborate closely with NNPC to ensure the timely and cost-effective delivery of these crucial projects.
