In Ajaokuta, Kogi State, the Nigerian National Petroleum Company Limited (NNPC) and its partners officially began construction yesterday on five small-scale LNG plants, totaling approximately $500 million.
Construction of the five mini-LNG plants—NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete—began with the groundbreaking ceremony, according to the business.
According to a breakdown of ownership, the NNPC owns 90% of Prime LNG, 50% of NGML/Gasnexus LNG, and 10% of BUA LNG, three of the five mini-LNG plants. Highland LNG and LNG Arete are being constructed by other private entities. 97 million standard cubic feet of gas per day (mmscf/d) is the total capacity of the plants.
Mele Kyari, the NNPC’s Group Chief Executive Officer, spoke at the event and reiterated the national oil company’s dedication to the federal government’s gas-to-power goals, pointing out that natural gas is the key to Nigeria’s bright and successful future.
He asserts that it will also serve as a stimulant for economic diversification, industrialization, and the creation of jobs.
According to Kyari, the projects are essential for expanding millions of Nigerians’ access to energy, creating jobs, fostering economic expansion, and boosting the country’s GDP. They also open doors for the commercialization of gas and aid in the federal government’s efforts to combat flare-downs.
These miniature LNG plants will guarantee the effective long-distance transportation of gas, offering homes, businesses, industries, and mobility a more affordable and clean energy source. For areas that do not already have access to gas pipeline infrastructure, this is especially crucial.
“We are well aware that gas delivery needs to be completed as quickly as possible, especially in areas without the backbone infrastructure that is now in place. For this reason, our partners and I have determined that it is both logical and timely to launch five small-scale LNG projects in one area.
“The explanations are quite obvious. Our pipeline network has arrived at the proper area. We already have gas in the pipeline, and we can swiftly and easily link to the main infrastructure that we are building up today,” he said.
According to Kyari, the project was moving forward and that equipment was already reaching the port and being cleared for transportation to the location.
The facility will allow gas delivery to all regions of the nation, supporting the government’s policy of promoting gas as the preferred energy transition fuel, Kyari said, underscoring the project’s importance and calling it a game-changer for the federal government’s efforts to provide affordable fuel to Nigerians.
Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), stated in his speech that natural gas is still a powerful tool for boosting Nigeria’s industrialization, economic expansion, and prosperity.
Ekpo emphasized that the projects are in line with the government’s goals of using Nigeria’s plentiful gas resources for national economic development, lowering the country’s carbon footprint, and improving the lives of Nigerians. He gave NNPC and its partners the assurance that the federal government would support them.
The governor of Kogi State, Ahmed Usman Ododo, thanked the federal government for placing the five Mini-LNG facilities in the state and called it a step in the right direction for Nigeria’s efforts to achieve energy security.
He promised that the state government will support the project by providing enough security, hiring people, and fostering community cooperation at all project locations from start to finish.
Speaking as well, NNPC Chairman Chief Pius Akinyelure said the milestone signified a new era of sustainable energy, energy security, and industrial growth and represented a significant advancement in Nigeria’s energy sector that coincides with the federal government’s goal.
The chairman of the NNPC board said, “The substantial private sector investment in these projects, which comes to about $500 million, is unmistakable evidence that the president’s plan to build gas-fueled prosperity is gaining traction.”
One of the five projects, the NNPC Prime LNG facility, is anticipated to process gas that is acquired from upstream producers, generating LNG with condensates and Liquefied Petroleum Gas (LPG) as byproducts.
ALSO READ: