Mini LNG plants in North Central; The South-South can’t be against it

By Abdelghaffar A. Abdelmalik

It was a groundbreaking ceremony on Thursday, 30th of January 2025, when NNPC and partners flagged off the construction of 5 mini LNG plants in Ajaokuta, Kogi state. The project is seen as a win-win for Nigeria and is in line with President Bola Tinubu’s vision and promoting gas usage for cleaner energy. It aligns with the government’s aspirations of harnessing Nigeria’s abundant gas resources for national economic development and enhancing the well-being of Nigerians.

It was an unprecedented partnership between NNPC Ltd and its partners. The five mini-LNG plants are: NNPCL Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.

NNPCL has a stake in three of the five mini-LNG plants, viz: 90 per cent in Prime LNG, 50 per cent in NGML/Gasnexus LNG and 10 per cent in BUA LNG), while Highland LNG and LNG Arete are developed by other private companies. The combined capacity of all the plants is 97 million standard cubic feet of gas per day.

Gases are not consumed where they are found. Rather than flaring the gas, it is commercialised and used nationwide. The location of the processing plants is such that it eases access for business. The plants are not constituency projects but investments. An investor considers a lot of factors before any establishment.

It is common knowledge that Natural Gas is meant to be transported as quickly as possible due to its volatility. You need a Natural Gas processing plant at a location that is centralized for easy access to the end users. They found Ajaokuta in Kogi state as that strategic location for the mini plants to ease access to different parts of the country, especially the far North.

This should be celebrated by every progressive Nigerian as the projects will increase access to energy for millions of Nigerians. It will also provide job opportunities, promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP). It will support the Federal Government’s flare-down initiatives. But you still have those who see things through the lens of sentiment.

It is surprising to read a publication in the Guardian Nigeria newspaper of 7th February 2025 that the National Chairman of Urhobo Oil and Gas Nationality, Dr Obiuwevbi Ominimini, has urged President Bola Tinubu and the National Petroleum Company Limited (NNPCL) to jettison the implementation of the five mini LNG plants in Kogi State. Invariably, he is angry that the plants are not located in Urhobo land. He called the establishment oppressive. I didn’t know the North-South hatred was still this deep.

It appears that the “Oil and Gas Nationality” leader is not aware of the purpose of the choice of location for an investment. For example, speaking at the event, the Founder/Executive Chairman of BUA Group, Abdul Samad Rabiu said: “This LNG plant will ensure that BUA’s captive power plants are provided with much-needed gas with limited supply downtime, thus enhancing our production and manufacturing capacity while positioning BUA to be fully integrated into the value chain of our energy supply operations”.

If it’s more conducive for BUA, for example, to put its Natural Gas plant where the complainant wants it located, I am sure he won’t hesitate to do so as a businessman. When a business line is purposefully established, the owners do not look at the area but the business interest. The reason why the same BUA is establishing a refinery in Akwa Ibom rather than Kano.

Sometimes, when we talk about resources, Nigeria and the North, we love to forget where we are coming from. We deliberately refused to read the history of how we got to where we are today. We deliberately refused to remember that between 1939-40 and 1947-48, the Northern region made 72.2% of provincial revenue contribution to the central fund while the Eastern and Western regions made 15.6% and 1.2%, respectively.

In those good old days, the North never saw any region as a parasite. It was about the nation, it was about Nigeria. It was about development. Admit it or not, the North played a key role in Nigeria’s oil and gas industry development.

As Sen. Natasha Akpoti-Uduaghan, Chairman of the Senate Committee on Local Content, stated after appreciating the efforts of President Bola Tinubu, “Gas is the future. It is a new paradigm shift for the country”.

The establishment of the mini LNG plants in Kogi state for ease of access to the far North should be applauded and seen as a step in the right direction towards improved use of a gas that is been flared.

Let’s keep the hatred and sentiment aside and look at the project from the Nigeria point of view. Nigeria cannot make progress if we resent each other. I don’t believe there is any part of the South-South that is against the establishment of the mini LNG plants in Ajaokuta. Whoever is sponsoring the negative publications about the project should pause a bit and have a reflection. It is not a constituency project but a Pan-Nigerian project.

Nigeria is ours and it is our responsibility to make it work. And to make it work, we must be willing to work together, irrespective of religion, region, tribe, and ethnicity. We must support any government initiative that brings benefits to different parts of the country.