NNPC Ltd signs two gas deals at COP28

NNPC Limited says it has signed two gas deals at COP28. The deal covers a floating liquefied natural gas deal and a small-scale LNG deal at the ongoing COP28 in Dubai.  According to the company, the deal is both for domestic, and international Markets. There is an Agreement on 421 tons per-day Small-Scale LNG Project in Ajaokuta and an MoU on Floating LNG.

In a December 6 statement signed by the Chief Corporate Communications Officer at the Nigerian National Petroleum Company Limited (NNPCL), Olufemi  Soneye,  the company said it has signed two major agreements to deliver LNG to both domestic and international markets.

During two separate signing ceremonies held on the sidelines of the ongoing COP28 conference, NNPC Limited signed a Memorandum of Understanding with Wison Heavy Industry Company Limited, a Chinese company, for the development of a floating LNG project in Nigeria, targeting the international LNG market.

The Floating LNG MoU was signed by the Executive Vice President, of 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.

On the other hand, NNPC Prime LNG Limited, an arm of NNPC Trading Limited 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 Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, of 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 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.

He said, “We are looking at a time frame 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 the Presidential mandate.”

Note that the SSLNG Project, which will be located at Ajaokuta in Kogi State, will ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. 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.

He said, “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.”