Nigeria’s state oil company, National Petroleum Company (NNPC), has signed two agreements to increase the scope of its liquefied natural gas (LNG) offerings for both local and foreign markets.
The agreements have been signed at the ongoing UN Climate Change Conference (COP28) being held in Dubai, United Arab Emirates, according to a press release posted by NNPC on X, formerly Twitter.
These deals come amid Nigeria’s efforts to drive economic growth and enhance energy security by utilising its huge natural gas resources.
NNPC has signed a memorandum of understanding (MoU) with China-based Wison Heavy Industry to develop a floating LNG project in Nigeria.
The project will target the international LNG market.
Furthermore, NNPC Trading’s subsidiary, NNPC Prime LNG, has signed an agreement with independent oil and gas company SDP Services for the supply, installation and commissioning of a small-scale LNG (SSLNG) project.
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With 421 tonnes per day of capacity, the SSLNG project will be located at Ajaokuta in Kogi State, Central Nigeria, and will target the domestic LNG market.
The SSLNG Project will ensure LNG supply to Autogas/Compressed Natural Gas customers and the country’s industrial/commercial customers.
It is due to be commissioned by December 2024.
NNPC Trading managing director Sade Lawal said: “We are looking at a time frame of 12 months from execution to the commissioning of the project.”
Commenting on the agreements, NNPC gas, power & new energy executive vice-president Olalekan Ogunleye said: “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.”
As per the estimates, Nigeria holds more than 200 trillion cubic feet of natural gas reserves, according to a Reuters report posted on Nasdaq.
In July 2023, NNPC signed an agreement with oil and gas company UTM Offshore for the construction of an indigenous floating LNG project.