President Bola Tinubu is set to inaugurate the construction of five mini-liquefied natural gas (LNG) projects in Ajaokuta, Kogi State, on January 30.
In a statement released yesterday, Olufemi Soneye, the chief corporate communications officer of the Nigerian National Petroleum Company (NNPC) Limited, announced that the projects include Highland LNG, LNG Arete, NNPC Prime LNG, NGML/Gasnexus LNG, and BUA LNG.
Describing the launch as a groundbreaking event, Soneye remarked, “This is unprecedented in Nigeria’s history—it has never happened before.”
“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.
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“The NNPC Ltd is proud to have led this development, with significant private sector participation,” Soneye said.
Soneye stated that this reflects the private sector’s positive reception of the president’s and NNPC’s vision for gas development, aimed at driving gas-powered economic growth while making energy more accessible and affordable for Nigerians.
He explained that the NNPC Prime LNG project, a small-scale LNG (SSLNG) initiative, aligns with the federal government’s gas policy and spans 33 hectares of land in Ajaokuta.
The NNPC spokesperson revealed that the project is being executed through a special purpose vehicle (SPV) jointly owned by NNPC Trading Limited (NTL), a subsidiary of NNPC, and Silver Peaks Limited, with a 90:10 equity distribution.
“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.
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“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 announced that Highland LNG, a new SSLNG facility, is set to supply gas to industrial and commercial customers who lack access to Nigeria’s pipeline network.
He added that the plant will also support off-grid power generation and contribute to the government’s Presidential CNG Initiative (PCNGi) by enabling the conversion of LNG to CNG.
Highlighting the contributions of LNG Arete Ltd, Soneye noted that the fully Nigerian-owned company is leveraging its oil and gas expertise to deliver secure and affordable LNG as an alternative energy source.
He reiterated the NNPC’s dedication to utilizing Nigeria’s gas resources to provide cost-effective energy solutions for citizens.
“We have signed Memoranda of Understanding (MoUs) and project development agreements for floating LNG projects, a first in the country. More benefits from gas initiatives are on the way,” he stated.
Soneye explained that these initiatives are designed to deliver gas solutions across the industrial, commercial, power generation, and transportation sectors.
He further revealed plans by NNPC to expand the country’s compressed natural gas (CNG) infrastructure, aiming to promote cleaner energy options and reduce transportation costs.
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He emphasised that CNG usage in vehicles is 40 per cent more affordable than petrol and also effective for power generation.
“Last year, we commissioned the 5.2mmscuf/d Ilasamaja CNG mother station in Lagos. Additionally, NNPC Retail Ltd launched 11 CNG stations across various locations in Abuja and Lagos,” Soneye said.
He added, “This year, we are collaborating with our partners to establish 100 more CNG stations nationwide. These stations signify a bold step in expanding our CNG footprint across the country and reinforcing our commitment to diversifying Nigeria’s energy mix.”
Soneye stated that additional final investment decisions (FIDs) will be made this year to roll out more CNG mother stations nationwide, further supporting economic growth and development.
