NNPCL Seals Gas Deals for Local, International Markets
The Nigerian National Petroleum Company Limited has announced that it had signed two major agreements to deliver Liquefied Natural Gas to the domestic gas market and the international LNG market.
It said the agreements were signed during two separate signing ceremonies held on the sidelines of the ongoing United Nations Climate Change Conference.
The company said in a statement issued in Abuja that it signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG projects 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, Mr 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,” the national oil firm stated in its statement.
It further stated that the small-scale LNG 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, Central Nigeria, will ensure the efficient supply of LNG to the autogas/Compressed Natural Gas and industrial/commercial customers nationwide. The LNG project is expected to be operational by December 2024.” NNPC stated.
Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye, said NNPC Ltd was 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.
