President Bola Tinubu will officially launch the construction of five small-scale LNG projects in Ajaokuta, Kogi state on January 30.
Olufemi Soneye, the chief corporate communications officer of the Nigerian National Petroleum Company (NNPC) Limited, stated in a statement on Sunday that the projects include LNG arete and highland LNG.
BUA LNG, NGML/gasnexus LNG, and NNPC prime LNG are also mentioned.
I’m pleased to let you know that we will be holding the groundbreaking ceremony for five mini-LNG projects in Ajaokuta, Kogi State, specifically on January 30, 2025. In a single shot, five mini-LNGs! Soneye stated, “This is unprecedented in Nigerian history; it has never happened before.”
At the historic ceremony, which has as its theme “From Gas to Prosperity: Catalysing Nigeria’s Economic Growth,” the president will perform the groundbreaking for five brand-new mini-LNG projects: NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete.
For what reason am I calling it unprecedented? This is because these kinds of engagements are essentially being held for the first time. Imagine holding historic milestones for these multi-million dollar projects and making five Final Investment Decisions (FIDs).
“The NNPC Ltd is honored to have spearheaded this advancement, with substantial involvement from the private sector.”
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According to Soneye, this shows that the private sector is responding favorably 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 NNPC Prime LNG project, a small-scale LNG (SSLNG) endeavor, is situated on 33 hectares of land in Ajaokuta and is in line with the federal government’s gas policy.
According to the NNPC spokesperson, the project is being carried out via a special purpose vehicle (SPV) that is 90:10 equity split between Silver Peaks Limited and NNPC Trading Limited (NTL), a NNPC subsidiary.
“The development of a 7.5MMSCFD plant is phase 1 of the NGML/Gasnexus LNG project, which entails the phased construction of a 20MMSCFD Mini-LNG plant,” he continued.
“The LNG facility will liquefy natural gas delivered by the current Oben-Ajaokuta pipeline, transport it via trucks powered by CNG (equipped with cryogenic tanks), and re-gasify it at each customer location for use.
The project’s goal is to provide commercial and industrial clients with a natural gas solution that is dependable, secure, long-term, and affordable.
The NGML and BUA Industries Limited (BUA) have partnered to build a 700TPD Mini-LNG plant in Ajaokuta, Kogi State, using 35MMSCFD. This project is called BUA LNG. The LNG facility will liquefy natural gas delivered by the current Oben-Ajaokuta pipeline, transport it via cryogenic trucks powered by CNG, and regasify it at BUA’s Sokoto Cement plant.
According to Soneye, gas will be supplied to commercial and industrial clients who are not connected to Nigeria’s pipeline network via the highland LNG, another SSLNG facility.
By facilitating LNG-to-CNG conversion, he added, the plant will also help off-grid power generation and the government’s presidential CNG initiative (PCNGi).
According to the NNPC official, LNG Arete Ltd., a company that is entirely owned by Nigerians, is using its experience in the oil and gas industry to offer LNG as a safe and reasonably priced alternative energy source.
He restated the NNPC’s resolve to use Nigeria’s gas resources to provide Nigerians with reasonably priced energy options.
Additionally, we signed project development agreements and Memorandums of Understanding (MoUs) for floating LNG projects, which is a first for the nation. Therefore, there are a lot more positive things to come from gas,” he said.
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According to Soneye, the projects will offer gas solutions for the transportation, power generation, commercial, and industrial sectors.
“More FINAL INVESTMENT DECISIONS WILL BE MADE TO RUN MORE CNG STATIONS.”
He also revealed the NNPC’s intentions to develop Nigeria’s compressed natural gas (CNG) infrastructure in an attempt to lower transportation costs and promote cleaner energy sources.
According to Soneye, using CNG in cars is 40% less expensive than using gasoline and is also more effective at producing electricity.
We opened the 5.2mmscuf/d Ilasamaja (Lagos) CNG mother station last year. Additionally, keep in mind that 11 CNG stations were opened by NNPC Retail Ltd. in different locations throughout Abuja and Lagos,” he said.
This year, we have been collaborating with our partners to install an additional 100 CNG stations. These CNG stations are a daring move toward expanding our nationwide CNG presence and, of course, proving our dedication to aiding in the diversification of Nigeria’s energy mix.
According to Soneye, in order to promote the growth and development of the national economy, more final investment decisions (FIDs) will be made this year to roll out more CNG mother stations across the country.
