This blog is about the two major agreements signed by NNPC LTD to deliver LNG to domestic and international markets.
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.
NNPC Ltd. Signs two major agreements to deliver LNG to domestic and international markets.
During two separate signing ceremonies held on the sidelines of the 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. Further, NNPC Prime LNG Ltd., an arm of NNPC Trading Ltd., signed a supply, installation and commissioning agreement with independent oil and gas company SDP Services, for a project serving the domestic LNG market with a capacity of 421 metric tons per day. The Small Scale LNG (SSLNG) Project will be located at Ajaokuta in Kogi State, Central Nigeria, and will ensure the efficient supply of LNG to autogas/compressed natural gas (CNG) customers, as well as industrial and commercial customers nationwide. The project is expected to be operational by December 2024, the company said.
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NNPC Trading Managing Director Lawal Sade said the SSLNG Project will boost the domestication of LNG utilization 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 [metric tons] 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”, he added.
In a panel session at COP28, NNPC Executive Vice President for Upstream Oritsemeyiwa Eyesan said the Oil and Gas Decarbonization Charter was a major opportunity not just for the company, but for the entire African sub-region. The charter calls on the oil and gas sector to achieve the goal of reaching net-zero emissions for their own operations by 2050. It also includes commitments to achieve near-zero methane emissions and no routine flaring by 2030.
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“Africa contributes three percent to emissions, but that does not exclude us from the consequences of the emissions. The decarbonization drive and the charter are not just ethical but also a strategic imperative for a major African National Oil Company (NOC) like ours”, Eyesan said. “We believe this charter is an important one. We are committed to working with all stakeholders to deliver on that”. “I assure you that we are open to working with our partners towards achieving zero-flare and methane emission reduction by 2030. This fits perfectly with our dreams, and we consider it achievable”, Eyesan continued.
In a statement signed by Olufemi Soneye Chief corporate communications officer NNPC Ltd 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.