• Saturday, February 24, 2024
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Nigeria’s gas takes center stage as NNPC strikes key agreements at COP28

$1.3bn owed to IOCs halts new gas investments

In a bid to boost natural gas adoption in the country and enhance Nigeria’s gas revenue, the Nigerian National Petroleum Company Limited (NNPC Ltd) has signed two major agreements to deliver Liquified Natural Gas (LNG) to the domestic and international gas market.

During two separate signing ceremonies held on the sidelines of the ongoing United Nation’s Climate Change Conference (COP28), NNPC Ltd signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG project in Nigeria, targeting the international LNG market.

As contained in a statement signed by Olufemi Soneye, chief corporate communications officer, the NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd, also signed a supply, Installation and Commissioning Agreement with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project targeting the domestic LNG market.

“The floating LNG MoU was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunbayo on behalf of NNPC Ltd and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

Read also: Natural gas is game-changer in Nigeria’s quest for energy security

”Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, NNPC Trading Ltd., Mr. Lawal Sade, on behalf of NNPC Prime LNG Ltd while Mr. Abhinav Modi, Managing Director of SDP Services Ltd, signed on behalf of his company.

“The SSLNG Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, will 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,” it stated.

Commenting on the deals, Olalekan Ogunleye, the executive vice president, Gas, Power & New Energy, NNPC Ltd said that the company is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialization efforts through the floating LNG Project.

“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. It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country,” Ogunleye stated.

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Also, in his remarks, Lawal Sade, the managing director NNPC Trading Ltd, said the SSLNG Project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

“We are looking at a time frame of 12 months from execution to the commissioning of the project. The project will deliver about 420 tonnes per day of LNG per day into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate,” Sade added.