COP28: NNPC Seals 2 Deals For Domestic, International Markets

In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, the Nigerian National Petroleum Company (NNPC) Limited has signed two major agreements to deliver liquefied natural gas (LNG) to the domestic gas market and the international LNG market.

During the two separate signing ceremonies held on the sidelines of the ongoing United Nation’s Climate Change Conference (also known as COP28), NNPC Ltd signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG project in Nigeria, targeting the international LNG market, the company said in a statement, yesterday.

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-tonne 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 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.

Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the managing director, NNPC Trading Ltd., 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.

RELATED

FCT Residents Reject Adodo’s Nomination To Development Commission

1 hour ago

International Coaching Federation Marks 10th Anniversary

2 hours ago

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 (CNG) and industrial/commercial customers nationwide. 

The LNG Project is expected to be operational by December 2024.

Speaking shortly after the signing ceremony, the executive vice president, Gas, Power & New Energy, 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.

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

“We are looking at a time-frame of 12 months, from execution to the commissioning of the project. The project will deliver about 420 tonnes 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 NNPC Ltd to deliver the projects within schedule and in the most cost-effective manner.