NNPC Boosts Gas Commercialization with New LNG Agreements

Nigerian National Petroleum Company Signs Pivotal LNG Deals to Expand Domestic and International Gas Markets

by Adenike Adeodun

The Nigerian National Petroleum Company Limited (NNPC) has actively expanded its Liquefied Natural Gas (LNG) services in both domestic and international markets. Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, revealed the signing of two key agreements that aim to boost natural gas utilisation in Nigeria and increase the country’s gas revenue.

At the United Nation’s Climate Change Conference (COP28), NNPC signed a pivotal agreement with Wison Heavy Industry Co. Ltd of China. This agreement, centering on a floating LNG project in Nigeria, targets the international LNG market. NNPC’s Executive Vice President, Gas, Power, and New Energy, Olalekan Ogunbayo, and Wison Ltd’s Managing Director, Kai Xu, personally signed the Memorandum of Understanding (MoU).

In a similar stride, NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, entered into an agreement with SDP Services, an independent oil and gas company. This project, with the goal of producing 421 tonnes of LNG per day, concentrates on the domestic market’s needs. Lawal Sade, Managing Director of NNPC Trading Ltd, and Abhinav Modi, Managing Director of SDP Services Ltd, signed this significant agreement.

According to a report by This Day Live, the Small-Scale LNG (SSLNG) project, slated to commence operations by December 2024, will be situated in Ajaokuta, Kogi State. Its focus is on efficiently supplying LNG to the autogas and compressed natural gas (CNG) sectors and diverse industrial and commercial clients across the nation.

Post-signing, Ogunleye expressed NNPC’s commitment to delivering gas nationwide and propelling the company’s gas commercialization efforts with the floating LNG project. “These projects play a critical role in commercialising Nigeria’s abundant gas resources and in securing foreign revenue from our gas assets,” stated Ogunleye.

Sade, speaking on the SSLNG Project, emphasised its vital role in fostering auto-gas initiatives in Nigeria. “This project is set to deliver approximately 420 tonnes of LNG daily to the domestic market, in line with the presidential mandate for efficient gas delivery to auto-gas, CNG, and industrial clients,” he said.

The partners, excited about the agreements, pledged their commitment to work alongside NNPC to deliver these projects on time and in a cost-effective manner.

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