NNPC Ltd. secures major LNG deals at COP28 in Dubai

Photo shows R-L: Executive Vice President, Gas, Power & New Energy, NNPC Ltd, Mr. Olalekan Ogunleye; Managing Director, NNPC Trading Ltd., Mr. Lawal Sade and Managing Director, SDP Services Ltd Mr. Abhinav Modi all displaying the signed agreement for the supply, installation and commissioning of a Small-Scale LNG (SSLNG) project in Ajaokuta, Kogi State, on the sidelines of the on-going United Nation’s Climate Change Conference, also known as COP28, in Dubai, UAE, on Wednesday. Mr. Roy Assaf is 1st from left.

NNPC Ltd., the Nigerian oil corporation, has successfully sealed significant liquefied natural gas (LNG) deals for both domestic and international markets at the COP28 summit in Dubai. 

The agreements include a 421-tonnes-per-day small-scale LNG project in Ajaokuta and a memorandum of understanding (MoU) on floating LNG. 

This development marks a significant milestone for NNPC Ltd. and is expected to have a substantial impact on the country's energy sector.

A press release to the effect by NNPC Ltd states: “In its efforts to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue, NNPC Ltd. has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market.

“During two separate signing ceremonies held on the sidelines of the on-going 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.

“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 tonnes per day LNG project targeting the domestic LNG market.”

The Floating LNG MoU, the release explained, was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunleye, on behalf of NNPC Ltd and Mr. 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., 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. 
Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye (seated from left) and Mr. Kai Xu, Managing Director of Wison Ltd (seated from right), signing an MoU for the development of Floating LNG project in Nigeria, on the sidelines of the on-going United Nation’s Climate Change Conference, also known as COP28, in Dubai, UAE, on Wednesday.

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

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye, said NNPC Ltd. is 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., Mr. Lawal Sade said 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 timeframe 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 Presidential mandate,” Sade added.

While expressing their delight at signing the agreements, the partners in a press release issued by Mr. Olufemi O. Soneye, Chief Corporate Communications Officer, NNPC Ltd, pledged to work with NNPC Ltd to deliver the projects within schedule and in the most cost-effective manner.
Share on Google Plus

About Newsmart


Post a Comment