NNPC seals LNG deals for domestic, international markets

The Nigerian National Petroleum Company Limited (NNPC Ltd) has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market.

A statement yesterday by the Chief Corporate Communications Officer of NNPC, Olufemi Soneye, said the deal was made during two separate signing ceremonies held on the sidelines of the on-going United Nations Climate Change Conference COP28).

Soneye said NNPC 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 while 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 SSLNG Project to be located at Ajaokuta in Kogi State would ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide.

He said the LNG project is expected to be operational by December 2024.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, 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.

Also, in his address after the signing, the MD NNPC Trading Ltd, Mr. Lawal Sade said the SSLNG project would boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

“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…,” Sade added.