NGMC, Transit Gas partner to construct LNG plant in Ajaokuta

The Nigerian Gas Marketing Company (NGMC), a subsidiary of the NNPC, in partnership with Transit Gas Nigeria Limited, a subsidiary of Axxela Limited has signed the Engineering, Procurement, Construction and Commissioning (EPCC) contract for the building of a 5MMSCFD small-scale liquefied natural gas plant in Ajaokuta, Kogi State, which is the first phase of a 20 MMSCFD development.

Speaking at the official contract signing ceremony, Bolaji Osunsanya, CEO of Axxela said: “This official contract signing ceremony is a major landmark for us. We are happy to cross this critical milestone on this multifaceted virtual pipeline development.

“With the recent declaration of the “Decade of Gas” by the Federal Government of Nigeria, we believe that collaborations of this nature are important to actualise the government’s aspiration. With all hands-on deck, the project is on the right footing for timely completion to unlock value for stakeholders and Nigeria as a nation,” he said.

The statement says the gas liquefaction project is in line with Axxela’s mission to provide innovative solutions that promote sustainable and efficient energy use for the benefit of all stakeholders.

According to the company, the project will serve stranded industrial and commercial customers who are currently using diesel and similar fuels, helping to improve their competitive advantage, thanks to its strategic central location in Ajaokuta and proximity to the Northern market.

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It will also serve as a catalyst for further industrialisation and will provide access to a cheaper, cleaner, and more environmentally friendly fuel in areas where there is no gas pipeline infrastructure, the company said.

Similarly, Umar Isa Ajiya, Group Executive Director & Chief Financial Officer, NNPC, representing the Group Managing Director of NNPC, Mele Kyari, reiterated that natural gas remains a transition fuel for Nigeria and as such, any agenda to further promote the energy transition project is a welcome development.

“For us as a government, natural gas remains a transition fuel for Nigeria, hence any project that seeks to further this agenda is a welcome development. This is a very significant project that will help reduce the challenges of using gas upcountry.

“The successful completion of the project will give further credence to the gas utilisation programme of the government given Nigeria’s abundant natural gas resources,” he said.

The mini-LNG project is a joint venture between NGMC, the gas marketing subsidiary of NNPC with decades of gas distribution and marketing experience as the largest domestic gas company in Nigeria and Transit Gas, a subsidiary of Axxela, and the operator of the joint venture, with extensive experience in gas infrastructure development and distribution.

This combined pedigree will enable the successful execution of the project, safely and efficiently, while keeping to global best practices, the company said.

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