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NNPC Seals Deals to Deliver LNG To Domestic, International Gas Markets

Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

The Nigerian National Petroleum Company Limited (NNPC) on Wednesday, announced that it had signed two major agreements to deliver Liquefied Natural Gas (LNG) to the domestic and international gas markets.

The national oil company in a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye, said the move aligned with its efforts to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue.

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

Also, NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd, 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 Memorandum of Understanding (MoU) was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunbayo on behalf of NNPC Ltd while the Managing Director of Wison Ltd, Mr. Kai Xu, signed on behalf of his company.

Both parties, the statement said, agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

Similarly, the Small-Scale LNG (SSLNG) project agreement, it said, 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, it noted, 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.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Ogunleye, said the company was committed to delivering gas to industries nationwide and accelerating the NNPC’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.

Also in an address after the signing, the MD NNPC Trading Ltd, Sade said the SSLNG Project will boost the domestication of LNG utilization 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.

While expressing their delight at signing the agreements, the partners pledged to work with the NNPC to deliver the projects within schedule and in the most cost-effective manner.

Emmanuel Addeh

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