NNPC Ltd initiates revival of Brass and Olokola LNG Projects

Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo (4th from right); CFO NNPC Ltd, Mr. Umar Ajiya (3rd from right) and EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye (3rd from left); with investors on the sidelines of the ongoing 2024 Gas Technology Conference & Exhibition (Gastech) in Houston, United States.

In a strategic effort to harness Nigeria's vast gas resources for economic growth, NNPC Ltd has commenced discussions with potential investors to revive two significant Liquefied Natural Gas (LNG) projects: Brass LNG and Olokola LNG. 

NNPC Ltd’s Chief Financial Officer (CFO), Mr. Umar Ajiya, disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday, September 19, 2024.

These projects, which have been inactive since around 2012, hold the promise of substantial economic benefits, including job creation and increased power generation. 

The Brass LNG project, located in Bayelsa State, is estimated to be worth $20 billion, while the Olokola LNG project in Ogun State is valued at approximately $9.8 billion. 

Brass LNG and OK LNG, according to a press release signed by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, are two LNG projects with the potential of manifold economic benefits for the country, which include job creation, power generation, revenue generation and economic diversification. 

The multi-billion dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past, the press release explains.

“In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX) and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class,”’ the CFO added. 

While describing NNPC Ltd as a commercially driven company, which recognises timely project development and execution, the CFO said there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.

Ajiya commended President Bola Ahmed Tinubu for his support in driving new projects in the industry through the presidential executive orders on Oil & Gas Reforms.

“We are also happy to have the Petroleum Industry Act (PIA), which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.” 

Ajiya described Gastech as an avenue for NNPC Ltd to learn new technologies, which will help the company decarbonise its operations and promote its abundant LNG resources to the global market. 

Newsmart learnt that Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact.

The revival of these projects, also, aligns with Nigeria's ambitions to enhance its LNG production capacity and contribute to global energy markets, ultimately fostering national prosperity and development.
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