NNPC in talks with investors to revive Brass, Olokola LNG projects

The Nigerian National Petroleum Company (NNPC) Limited has begun discussions with investors towards bringing back Brass and Olokola Liquefied Natural Gas (LNG) projects, Umar Ajiya, chief financial officer (CFO) of the state-owned oil company revealed.

The CFO disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday, according to a release made available by Olufemi Soneye, chief corporate communications officer of the NNPC Ltd.

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Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country, including job creation, power generation, revenue generation, and economic diversification.

The multi-billion-dollar projects were stalled due to unfavourable market dynamics and slow decision-making by the political class in the past, the NNPC said.

“In the past, gas prices went down, and the economics of the projects meant a high Capital Expenditure (CAPEX), which was a disincentive for investors and partners. Also, there was slow decision-making by the political class,” the CFO added.

The CFO said there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.

Ajiya commended President Bola Ahmed Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil & Gas Reforms.

“We are also happy to have the Petroleum Industry Act, 2021 (PIA) which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”

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Ajiya described Gastech as an avenue for NNPC to learn new technologies which will help the Company decarbonise its operations and promote its abundant LNG resources to the global market.

“Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways toward global energy security for lasting climate impact.”