The Nigerian National Petroleum Company Limited (NNPC) has announced the signing of two significant agreements aimed at delivering Liquefied Natural Gas (LNG) to both the domestic and international markets. The agreements were formalized during separate signing ceremonies at the ongoing United Nations Climate Change Conference.
Key Points:
- Floating LNG Projects with Wison Heavy Industry:
- NNPC signed a Memorandum of Understanding (MoU) with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG projects in Nigeria. The focus of these projects is on meeting the demand in the international LNG market. The MoU outlines the collaboration between NNPC and Wison in charting a roadmap for project development leading to an investment decision.
- Small-Scale LNG Project with SDP Services:
- NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, signed a Supply, Installation, and Commissioning Agreement with SDP Services, an independent oil and gas company. This agreement is for a 421 tonnes per day LNG project aimed at serving the domestic LNG market. The project, located at Ajaokuta in Kogi State, is expected to supply LNG efficiently to autogas/Compressed Natural Gas and industrial/commercial customers nationwide, with operational commencement targeted for December 2024.
- Strategic Impact and Commitment:
- NNPC emphasizes the strategic impact of these projects on the commercialization of Nigeria’s abundant gas resources and the generation of foreign revenue from its gas assets. The company is committed to delivering gas to industries across the country and accelerating gas commercialization efforts through the floating LNG project.
- Operational Timeline:
- The small-scale LNG project, slated for Ajaokuta, Kogi State, is expected to be operational by December 2024. NNPC sees these initiatives as aligned with the company’s commitment to realizing the gas and power aspirations outlined by the Nigerian government.
- Statement from NNPC:
- NNPC’s Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye, expressed the significance of both projects and their potential impact on Nigeria’s gas sector. He highlighted the alignment of these initiatives with the company’s efforts to meet the gas and power objectives set by the government.
Conclusion: The agreements signed by NNPC with Wison Heavy Industry and SDP Services reflect the company’s commitment to leveraging its abundant gas resources for both domestic and international markets. These projects are poised to contribute to the commercialization of Nigeria’s gas assets and align with the broader national goals for the gas and power sectors.
