Nigerian National Petroleum Company Limited (NNPC) and its partners have flagged off the construction of five mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State, with a total footprint of about $500 million.
The company said the groundbreaking ceremony, signalled the commencement of construction works on the five mini-LNG plants namely: NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.
A breakdown of the ownership showed that the NNPC 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. In all, the plants have a combined capacity of 97 million standard cubic feet of gas per day (mmscf/d).
Speaking at the ceremony, the Group Chief Executive Officer of the NNPC, Mele Kyari, reaffirmed the national oil company’s commitment to the federal government’s gas-to-power aspirations, noting that natural gas holds the key to unlocking a bright and prosperous future for Nigeria.
He said it will also act as a catalyst for industrialization, job creation, and economic diversification.
According to Kyari the projects play a critical role in increasing access to energy for millions of Nigerians, providing job opportunities, promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP), while creating opportunities for gas commercialisation and supporting the federal government’s flare down initiatives.
“These mini LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households, mobility, industries, and businesses. This is particularly important for regions that currently lack access to gas pipeline infrastructure.
“We understand very clearly that gas delivery must be done in the quickest manner, particularly for locations where the backbone infrastructure doesn’t exist today. And that is why we and our partners decided that it is appropriate and timely to start five mini LNG projects in one location.
“The reasons are very clear. This is the appropriate location our pipeline network has reached. Gas is already on our pipeline, and we can easily connect to the major infrastructure that we are building up today very, very quickly,” he stated.
The project, Kyari said, was advancing, with equipment already arriving at the port and undergoing clearance for delivery to the site.
Kyari emphasised the significance of the project, describing it as a game-changer for the federal government’s efforts to provide affordable fuel to Nigerians, adding that the facility will enable gas delivery to all parts of the country, supporting the government’s policy of promoting gas as the preferred energy transition fuel.
In his remarks, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said natural gas remains a veritable vehicle for accelerating Nigeria’s industrialisation, economic growth and prosperity.
Ekpo, who assured NNPC and its partners of federal government’s support, stressed that the initiatives align with the government’s aspirations of harnessing Nigeria’s abundant gas resources for national economic development, reducing the nation’s carbon footprint and enhancing the well-being of Nigerians.
In his remarks, Kogi State Governor, Ahmed Usman Ododo expressed appreciation to the federal government for locating the 5 Mini-LNG plants in the state, describing it as a step forward in Nigeria’s march towards attaining energy security.
He assured of the state government’s support for the project through manpower supply, provision of adequate security and host community collaboration at the projects’ various sites from commencement to completion.
Also speaking, Chairman, NNPC, Chief Pius Akinyelure said the milestone marked a significant advancement in Nigeria’s energy sector and aligns with the federal government’s agenda, signaling a new era of sustainable energy, energy security, and industrial growth.
“The significant private sector footprint in these investments, totaling approximately $500 million, is clear proof that the president’s agenda to create gas-fueled prosperity is gathering momentum,” the NNPC board chairman stated.
The NNPC Prime LNG plant, one of the five projects, is expected to process gas purchased from upstream producers, producing LNG with Liquefied Petroleum Gas (LPG) and condensates as by-products.
Author:; Maureen Ikpeama