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COP28: NNPCL seals deal with LNG for domestic, international markets

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1 year ago

In its efforts to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue, the Nigerian National Petroleum Company Limited (NNPCL) has signed two major agreements to deliver LNG to the domestic and the international LNG market.

At the two separate signing ceremonies held on the sidelines of the ongoing United Nations Climate Change Conference, the company assigned a Memorandum of Understanding (MoU) 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 MoU was signed by the Executive Vice President of Gas, Power & New Energy, Mr. Olalekan Ogunleye, on behalf of NNPC Ltd and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company.

Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director of 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, 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 of Gas, Power & New Energy, Mr. Olalekan Ogunleye, said NNPC Ltd is committed to delivering gas to industries nationwide and accelerating the company’s gas commercialization efforts through the floating LNG Project.

“We see both projects as having an 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 his address after the signing, the MD of NNPC Trading Ltd, Mr. Lawal Sade, said the SSLNG Project will boost the domestication of LNG utilization by supporting the growth of autogas 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 into the domestic market, which will enhance the efficient delivery of gas to the autogas/CNG and industrial customers in line with the Presidential mandate,” Sade added.

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

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