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NNPC Signs 2 Gas Deals At COP28

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The Nigeria National Petroleum Company Limited (NNPCL) has signed two gas deals on the sidelines of the ongoing United Nation’s Climate Change Conference also known as COP28 in Dubai the United Arab Emirates (UAE).

The agreement comprises a small-scale Liquified Natural Gas (LNG) deal as well as a floating LNG contract.

In a statement  signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPCL and posted on NNPCL X page on Wednesday, the national oil company said the agreement covers both domestic and international markets.

The statement said the deal is to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue.

It said one of the MoU signing ceremonies was done by Wison Heavy Industry Co. Ltd, a Chinese company, for the development of 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, Gas, Power & New Energy, Olalekan Ogunleye on behalf of NNPC Ltd and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

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Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, 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, north central Nigeria, will ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas C and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye said NNPCL is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialisation efforts through the floating LNG Project.

“We see both projects as having enormous impact all over the country because they are central to the commercialisation 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.

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Also, in his address after the signing, the MD NNPC Trading Ltd, Mr. Lawal Sade said the SSLNG Project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

“We are looking at a timeframe of 12 months from execution to the commissioning of the project. The project will deliver about 420 tonnes per day of LNG per day into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate,” Sade added.

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

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Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.

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