COP28: NNPC Ltd. signs another Floating LNG deal with Chinese EPC firm
NNPC Ltd. signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG project in Nigeria
… enters MoU with SDP Services for the establishment of 421 tpd small-scale LNG project in Ajaokuta
Oredola Adeola
The Nigerian National Petroleum Company Limited (NNPC Ltd) has inked deals with Wison Heavy Industry Co. Ltd, a Chinese engineering, procurement, and construction company(EPC) company, for the development of a floating LNG project in Nigeria, and another deal with SDP Services for the supply, installation, and commissioning of a 421 tonnes per day Small-Scale LNG (SSLNG) project in Ajaokuta, Kogi state, both aimed at boosting natural gas utilization and enhance Nigeria’s gas revenue.
Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, made this known in a statement obtained by EnergyDay on Wednesday.
According to him, the two LNG deals were signed separately on the sidelines of the ongoing United Nations Climate Change Conference (also known as COP28), with an effort to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue,
Soneye in the statement stated that the NNPC Prime LNG Ltd., an arm of NNPC Trading Ltd., signed the Supply, Installation, and Commissioning Agreement with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project which is expected to be located at Ajaokuta in Kogi State, targeting the domestic LNG market.
Olalekan Ogunleye, Executive Vice President, of Gas, Power & New Energy, on behalf of NNPC Ltd, and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company, signed the Floating LNG MoU.
EnergyDay gathered that the new Floating LNG MoU was signed four months after the Nigerian Government signed UTM Offshore to build a 1.5 metric tonnes per floating LNG plant.
Soneye further confirmed that the parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.
He said, “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, 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.
Mr. Olalekan Ogunleye, EVP Gas, Power & New Energy, in his comment shortly after the signing ceremony, said the NNPC Ltd. is committed to delivering gas to industries nationwide and accelerating its gas commercialisation efforts through the floating LNG Project.
“We see both projects as having an 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.
Mr. Lawal Sade, MD NNPC Trading Ltd., in his address after the signing, 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 time frame 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 the 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.
