During two separate signing
ceremonies held on the sidelines of the on-going 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.
NNPCL Chief Communications
Officer, Mr. Olufemi Soneye disclosed this in a press statement yesterday.
The statement noted that also,
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 tons per day LNG project targeting the domestic LNG market.
The Floating LNG MoU was signed
by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunbayo
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.
Similarly, the Small-Scale LNG
(SSLNG) Project agreement was signed by the Managing Director, 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 SSLNG Project, which will be
located at Ajaokuta in Kogi State, Central Nigeria, 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 commercialization efforts through the floating
LNG Project.
“We see both projects as having enormous
impact all over the country because they are central to the commercialization
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,” Ogunleye stated.
Also, in his address after the
signing, 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.
“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 Presidential mandate,” Sade added.
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.
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