NNPC Ltd Secures LNG Deals for Domestic and International Markets at COP28 in Dubai
In a bid to boost natural gas utilization and enhance Nigeria’s gas revenue, NNPC Ltd has signed two major agreements for the delivery of LNG to both the domestic and international markets. The agreements were signed on the sidelines of the United Nations Climate Change Conference (COP28).
The first agreement is a Memorandum of Understanding (MoU) between NNPC Ltd and Wison Heavy Industry Co. Ltd, a Chinese company, for the development of a floating LNG project in Nigeria targeting the international LNG market.
The second agreement involves NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, which 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 MoU aims to develop a roadmap for project development leading to an investment decision. The Small-Scale LNG (SSLNG) Project will be located at Ajaokuta in Kogi State and is expected to supply LNG to Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide, operational by December 2024. NNPC Ltd is committed to delivering gas to industries nationwide and accelerating its gas commercialization efforts through these projects.
“We see both projects as having The Managing Director of NNPC Trading Ltd, Mr. Lawal Sade, highlighted the significance of the Small-Scale LNG (SSLNG) Project in boosting the domestication of LNG utilization. He emphasized that the project would support the growth of auto-gas initiatives across the country, contributing to the development and adoption of LNG for various applications, particularly in the transportation sector.
The SSLNG Project aligns with efforts to enhance the accessibility and utilization of LNG within Nigeria for both industrial and automotive purposes 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.
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“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.
