The Nigerian National Petroleum Company Limited (NNPC) revealed on Wednesday that it has finalized two significant agreements for the supply of Liquefied Natural Gas (LNG) to both domestic and international markets. The announcements were made during separate ceremonies held at the United Nations Climate Change Conference.
In a statement released in Abuja, NNPC disclosed the signing of a Memorandum of Understanding (MoU) with Wison Heavy Industry Co. Ltd, a Chinese firm. This agreement is aimed at developing floating LNG projects within Nigeria, specifically targeting the international LNG market. The Executive Vice President of Gas, Power & New Energy, Mr. Olalekan Ogunleye, represented NNPC Ltd in signing the MoU, while Mr. Kai Xu, the Managing Director of Wison Ltd, signed on behalf of his company. Both parties committed to collaborating on the project's roadmap leading to an investment decision.
Additionally, NNPC Prime LNG Ltd, a subsidiary of NNPC Trading Ltd, entered into a Supply, Installation, and Commissioning Agreement with SDP Services, an independent oil and gas company. This agreement focuses on a 421 tonnes per day LNG project designed to cater to the domestic LNG market. The Managing Director of NNPC Trading Ltd, Mr. Lawal Sade, and Mr. Abhinav Modi, the Managing Director of SDP Services Ltd, signed the agreement.
The smaller-scale LNG project, located in Ajaokuta, Kogi State, Central Nigeria, aims to efficiently supply LNG to autogas/Compressed Natural Gas and industrial/commercial customers nationwide. NNPC projects the LNG facility to become operational by December 2024.
After the signing ceremony, Mr. Olalekan Ogunleye, the EVP Gas, Power & New Energy, emphasized NNPC Ltd's commitment to delivering gas to industries across Nigeria. He highlighted the significance of both projects in the commercialization of Nigeria's abundant gas resources, aiming to generate essential foreign revenue and align with NNPC management's efforts to fulfill the gas and power aspirations set by the President.
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