September 20, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited says it has opened discussions with investors, to revive two Liquefied Natural Gas (LNG) projects, Brass and Olokola LNG projects.
A statement issued on Friday by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, said the talks are part of efforts by the Nigeria oil company to maximise the nation’s abundant gas resources for economic development and prosperity.
Soneye explained that the Chief Financial Officer (CFO), NNPC Ltd, Mr Umar Ajiya, disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States.
He stated that Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country which include job creation, power generation, revenue generation and economic diversification.
Soneye added that the multi-billion-dollar projects were, however, stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.
Industry sources revealed that the Olokola gas project in Ogun State is valued at $9.8 billion, and the Brass LNG plant in Bayelsa State, is valued at $20 billion, together amounted to $29.8 billion.
The two projects are among the largest gas infrastructure investments in Nigeria.
Ajiya said: “In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX), and this was a disincentive for investors and partners. Also, there was slow decision-making by the political class.”
While describing NNPC Ltd. as a commercially driven Company which recognises timely project development and execution, the CFO said there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.
Ajiya commended President Bola Ahmed Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil & Gas Reforms.
He said: “We are also happy to have the Petroleum Industry Act, 2021 (PIA) which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”
Ajiya described Gastech as an avenue for NNPC Ltd. to learn new technologies which will help the Company decarbonise its operations and promote its abundant LNG resources to the global market.
“Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact”, Soneye said.
