Tinubu to flag off construction of five LNG projects in Kogi Thursday

Tinubu to flag off construction of five LNG projects in Kogi Thursday

President Bola Tinubu will flag off the construction of five
mini liquified natural gas (LNG) projects in Ajaokuta, Kogi state, on January
30.

 

In a statement on Sunday, Olufemi Soneye, chief corporate
communications officer of the Nigerian National Petroleum Company (NNPC)
Limited, said the projects include highland LNG, and LNG arete.

 

Others listed are the NNPC prime LNG, NGML/gasnexus LNG, and
BUA LNG.

 

“I am happy to inform you that this coming week, on the 30th
January 2025 specifically, we are holding the ground-breaking ceremony of five
mini-LNG projects in Ajaokuta, Kogi State. Five mini-LNGs in one fell swoop!
This is unprecedented in the history of Nigeria; it has never happened before,”
Soneye said.

 

“Under the theme “From Gas to Prosperity: Catalysing
Nigeria’s Economic Growth”, the epic ceremony will see Mr. President performing
the groundbreaking for brand new five mini-LNG projects namely: NNPC Prime LNG,
NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.

 

“Why am I referring to it as unprecedented? This is because
it is virtually the first time such engagements would be held. Imagine taking
five Final Investment Decisions (FIDs) and holding groundbreaking milestones on
these multi-million-dollar projects.

 

“The NNPC Ltd is proud to have led this development, with
significant private sector participation.”

 

This, Soneye said, demonstrates the private sector’s
positive response to the president and NNPC’s vision on gas, which is aimed at
fostering gas-fuelled prosperity while making energy more accessible and
affordable to Nigerians.

 

He said the NNPC Prime LNG project, a small-scale LNG
(SSLNG) initiative, aligns with the federal government’s gas policy and sits on
33 hectares of land in Ajaokuta.

 

The NNPC spokesperson said the project is being implemented
through a special purpose vehicle (SPV) jointly owned by the NNPC Trading
Limited (NTL), a subsidiary of NNPC, and Silver Peaks Limited, with a 90:10
equity split.

 

“The NGML/Gasnexus LNG project involves the phased
construction of a 20MMSCFD Mini-LNG plant with phase 1 being the development of
a 7.5MMSCFD plant,” he added.

 

“Natural gas supplied via the existing Oben-Ajaokuta
pipeline will be liquefied at the LNG facility, transported via CNG fuelled
trucks (fitted with cryogenic tanks) and re-gasified at each customer location
for use.

 

“The project aims to deliver a cost-effective, long-term,
dedicated, secure and reliable natural gas solution to industrial and
commercial customers.

 

“The BUA LNG is a partnership between the NGML and BUA
Industries Limited (BUA) to develop a 700TPD (using 35MMSCFD) Mini-LNG plant in
Ajaokuta, Kogi State. Natural gas supplied via the existing Oben-Ajaokuta
pipeline will be liquefied at the LNG facility, transported via CNG fuelled
cryogenic trucks and regasified at BUA’s Sokoto Cement plant.”

 

Soneye said the highland LNG, another SSLNG facility, will
supply gas to industrial and commercial customers not connected to Nigeria’s
pipeline network.

 

He said the plant will also support off-grid power
generation and the government’s presidential CNG initiative (PCNGi) by enabling
LNG-to-CNG conversion.

 

The NNPC official said the LNG Arete Ltd, a fully
Nigerian-owned company, is leveraging its expertise in the oil and gas sector
to provide secure and affordable LNG as an alternative energy source.

 

He reaffirmed the NNPC’s commitment to utilising Nigeria’s
gas resources to bring affordable energy solutions to Nigerians.

 

“We have also signed Memorandum of Understanding (MoUs) and
project development agreements for floating LNG projects, another first in the
country. So, many more good things from gas are coming,” he said.

 

Soneye said the initiatives will provide gas solutions
across the industrial, commercial, power generation, and transportation
sectors.

 

‘WE’LL TAKE MORE FINAL
INVESTMENT DECISIONS TO ROLL OUT ADDITIONAL CNG STATIONS’

He also disclosed the NNPC’s plans to expand Nigeria’s
compressed natural gas (CNG) infrastructure as part of efforts to promote
cleaner energy solutions and reduce transportation costs.

 

Soneye said CNG usage in automobiles is 40 percent cheaper
than petrol and also efficient for power generation.

 

“Last year, we inaugurated the 5.2mmscuf/d Ilasamaja (Lagos)
CNG mother station. Recall also that the NNPC Retail Ltd inaugurated 11 CNG
stations across various locations in Abuja and Lagos,” he said.

 

“We have been working with our partners to deliver 100 more
CNG stations this year. These CNG stations represent a bold step in extending
our CNG presence nationwide, and obviously in demonstrating our commitment to
help diversify Nigeria’s energy mix.”

 

Soneye said more final investment decisions (FIDs) will be
taken this year to roll out additional CNG mother stations nationwide to
support national economic growth and development.

Source: Tinubu to flag off construction of five LNG projects in Kogi Thursday

 - NigerianEye
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