In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, the Nigerian National Petroleum Company Limited signed two major agreements to deliver LNG to the domestic and international gas markets.
This was done during two signing ceremonies on the sidelines of the COP28 summit in Dubai in UAE.
NNPCL signed an MoU with Wison Heavy Industry Company Limited, a Chinese company, for the development of floating LNG project in Nigeria, targeting the international LNG market.
Also, NNPC Prime LNG Limited, an arm of NNPC Trading Limited, 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 and New Energy, Olalekan Ogunbayo, on behalf of NNPCL and Kai Xu, Managing Director of Wison Limited, 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.
Similarly, the Small-Scale LNG project agreement was signed by the Managing Director, NNPC Trading Limited, Lawal Sade, on behalf of NNPC Prime LNG Limited, while Abhinav Modi, Managing Director of SDP Services Limited, 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 and industrial/commercial customers nationwide.
The LNG project is expected to be operational by December 2024.
Speaking shortly after the signing ceremony, Ogunleye said NNPCL is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialisation efforts through the floating LNG Project.
He said: “We see both projects as having enormous impact all over the country because 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.
“It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country.”
Also, in his address after the signing, Sade said the SSLNG project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.
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He said: “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.”
While expressing their delight at signing the agreements, the partners pledged to work with NNPCL to deliver the projects within schedule and in the most cost-effective manner.End
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