Beginning on January 30, President Bola Tinubu will officially open five small-scale LNG projects in Ajaokuta, Kogi state.
Olufemi Soneye, the Nigerian National Petroleum Company’s (NNPC) Limited chief corporate communications officer, stated in a statement on Sunday that the projects include LNG arete and highland LNG.
NGML/gasnexus LNG, BUA LNG, and NNPC prime LNG are also mentioned.
We will be holding the groundbreaking ceremony for five mini-LNG projects in Ajaokuta, Kogi State, this coming week, specifically on January 30, 2025. A total of five mini-LNGs in one! There has never been anything like this in Nigerian history,” Soneye stated.
Mr. President will perform the groundbreaking for five brand-new mini-LNG projects, including NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete, as part of the epic ceremony with the theme “From Gas to Prosperity: Catalyzing Nigeria’s Economic Growth.”
“Why am I calling it unprecedented? This is due to the fact that it is essentially the first time that such an engagement will take place. Consider making five Final Investment Decisions (FIDs) and establishing historic benchmarks for these multi-million dollar initiatives.
“With substantial private sector involvement, NNPC Ltd is proud to have spearheaded this development.”
Soneye stated that this shows the private sector’s favorable reaction to the president’s and NNPC’s gas vision, which aims to promote prosperity driven by gas while lowering the cost and increasing the accessibility of energy for Nigerians.
According to him, the 33-hectare NNPC Prime LNG project, a small-scale LNG (SSLNG) initiative, is in line with the federal government’s gas policy.
NNPC Trading Limited (NTL), a NNPC subsidiary, and Silver Peaks Limited jointly own the project through a special purpose vehicle (SPV) with a 90:10 equity split, according to the NNPC spokesperson.
“A 20MMSCFD Mini-LNG plant will be built in phases as part of the NGML/Gasnexus LNG project, with phase 1 entailing the development of a 7.5MMSCFD plant,” he continued.
At the LNG facility, natural gas delivered by the current Oben-Ajaokuta pipeline will be liquefied before being transported by CNG-fueled trucks equipped with cryogenic tanks and re-gasified for use at each customer location.
“The project intends to provide industrial and commercial clients with a natural gas solution that is economical, long-term, committed, secure, and dependable.”
“The BUA LNG is a collaboration between the NGML and BUA Industries Limited (BUA) to build a 700TPD Mini-LNG plant in Ajaokuta, Kogi State, using 35MMSCFD. At the LNG facility, natural gas delivered by the current Oben-Ajaokuta pipeline will be liquefied before being transported by cryogenic trucks powered by CNG and regasified at BUA’s Sokoto Cement plant.
Soneye stated that industrial and commercial clients who are not connected to Nigeria’s pipeline network will receive gas from the highland LNG, another SSLNG facility.
According to him, the plant will facilitate LNG-to-CNG conversion, which will help off-grid power generation and the government’s presidential CNG initiative (PCNGi).
The LNG Arete Ltd., a fully Nigerian-owned business, is using its experience in the oil and gas industry to offer safe and reasonably priced LNG as an alternative energy source, according to the NNPC official.
The NNPC’s dedication to using Nigeria’s gas resources to provide Nigerians with reasonably priced energy solutions was reiterated by him.
In another first for the nation, we have also inked project development agreements and Memorandums of Understanding (MoUs) for floating LNG projects. “There will be a lot more positive effects from gas,” he stated.
The projects will offer gas solutions for the transportation, power generation, commercial, and industrial sectors, according to Soneye.
“WE WILL MAKE MORE FINAL DECISIONS ABOUT INVESTMENT TO OPEN MORE CNG STATIONS.”
Additionally, he revealed the NNPC’s intentions to reduce transportation costs and promote cleaner energy solutions by expanding Nigeria’s compressed natural gas (CNG) infrastructure.
According to Soneye, using CNG in cars can generate electricity more efficiently and is 40% less expensive than using gasoline.
“Last year, we inaugurated the 5.2mmscuf/d Ilasamaja (Lagos) CNG mother station. Recall also that the NNPC Retail Ltd inaugurated 11 CNG stations across various locations in Abuja and Lagos,” he said.
“We have been working with our partners to deliver 100 more CNG stations this year. These CNG stations represent a bold step in extending our CNG presence nationwide, and obviously in demonstrating our commitment to help diversify Nigeria’s energy mix.”
Soneye said more final investment decisions (FIDs) will be taken this year to roll out additional CNG mother stations nationwide to support national economic growth and development.
