Nigeria shifts focus to domestic LNG supply as five mini plants launched
The Nigerian National Petroleum Company Ltd and its partners launched five mini liquefied natural gas (LNG) plants in Ajaokuta, Kogi State, on Thursday as part of efforts to deepen domestic gas utilisation.
The move comes more than two decades after the country started exporting LNG through Nigeria LNG Limited, owned by the federal government and three international oil companies.
The groundbreaking ceremony signalled the commencement of construction works on the five plants, namely NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.
NNPC Ltd has stakes in three of the plants (90% in Prime LNG, 50% in NGML/Gasnexus LNG and 10% in BUA LNG), while Highland LNG and LNG Arete are developed by other private companies, according to a statement.
The plants have a combined capacity of 97 million standard cubic feet of gas per day.
Mele Kyari, the group CEO of NNPC Ltd, reaffirmed the company’s unwavering commitment to Federal Government’s gas-to-power aspirations, noting that natural gas holds the key to unlocking a bright and prosperous future for Nigeria, and a catalyst for industrialization, job creation, and economic diversification.
He said the projects play a critical role in increasing access to energy for millions of Nigerians, providing job opportunities, promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP), while creating opportunities for gas commercialisation and supporting the Federal Government’s flare-down initiatives.
“These Mini LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households, mobility, industries, and businesses. This is particularly important for regions that currently lack access to gas pipeline infrastructure,” Kyari added.
He attributed the company’s strides in upstream and gas infrastructure projects to the unwavering support of President Bola Tinubu in utilizing gas resources to fuel industrialization, achieve energy security and foster economic growth and development.
Ekperikpe Ekpo, minister of state for petroleum resources (gas), who described the development as an unprecedented feat in the history of Nigeria’s oil and gas industry, said natural gas remains a veritable vehicle for accelerating Nigeria’s industrialization, economic growth and prosperity.
Ekpo, who assured NNPC Ltd. and its partners of Federal Government’s support, stressed that the initiatives align with Government’s aspirations of harnessing
Nigeria’s abundant gas resources for National economic development, reducing the nation’s carbon footprint and enhancing the well-being of Nigerians.