Nigeria’s NNPC to Launch Three Mini-LNG Projects in August


The Nigerian National Petroleum Company Limited (NNPC) announced plans to initiate three mini-Liquefied Natural Gas (LNG) projects in August 2024. NNPC’s Group Chief Executive Officer, Mele Kyari, made this announcement at the inaugural Africa Gas Innovation Summit 2024 in Abuja. The summit, organized by the Society of Petroleum Engineers, focused on driving sustainability in Africa’s energy landscape through gas technology and innovation.

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Kyari also revealed that NNPC will finalize the investment decision for six additional Compressed Natural Gas (CNG) mother stations this year, while upgrading numerous CNG refueling stations nationwide. Both LNG and CNG are cleaner alternatives to traditional fuels like petrol and diesel. LNG is typically used in power plants and industrial processes, while CNG serves as a transportation fuel and a power generation source.

Representing Kyari at the summit, Olalekan Ogunkeye, NNPC’s Executive Vice President for Gas, Power, and New Energy, highlighted various agreements signed to develop gas projects in line with the Federal Government’s goal to expand gas usage. “To accelerate gas commercialization, NNPC has signed MoUs and project development agreements for floating LNG projects, marking the first of their kind in Nigeria. We are also executing a 30mmscuf/d small-scale mini-LNG project and participating in three mini-LNG projects set for groundbreaking this August,” Ogunkeye stated.

Kyari emphasized NNPC’s commitment to the Federal Government’s autogas initiative, noting the recent inauguration of a 5.2mmscuf/d CNG plant in Ilasamaja. The company plans to roll out six more CNG mother stations with similar capacities and upgrade several CNG refueling stations nationwide.

Other initiatives include developing gas-based industries in industrial hubs across Nigeria, featuring fertilizer and chemical plants. These efforts align with the Federal Government’s Decade of Gas program, aimed at enhancing energy security and economic development through gas utilization.

Commenting on the energy landscape, Kyari noted that sub-Saharan Africa remains energy deficient despite its low emissions. “Nigeria is blessed with over 209 TCF of natural gas resources, which can help address energy challenges by providing electricity, clean cooking fuel, autogas, and industrial feedstock, thereby generating wealth and improving well-being,” he said.

Kyari highlighted several gas infrastructure projects, including the second phase of the AHL gas processing plant, the 300mmscuf/d ANOH gas processing plant, and the ANOH gas pipeline project, all inaugurated by the President of Nigeria. “NNPC is focused on leveraging the nation’s gas assets to create significant value and opportunities for all Nigerians,” he added.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, represented by the ministry’s Permanent Secretary Nicholas Ella, stated that Africa’s abundant natural gas resources position it to meet energy needs and drive sustainable development. He stressed the importance of investing in cutting-edge research and deploying advanced gas technologies to minimize environmental impact while maximizing efficiency.

Chairman of the Society of Petroleum Engineers Nigeria Council, Salahuddeen Tahir, identified financing, technological gaps, high production costs, infrastructure challenges, and security issues as major obstacles in Africa’s energy sector. He called for urgent innovation to benefit the industry, economies, and citizens.

At the summit, Amina Benkhadra from the National Office of Hydrocarbons and Mines in Morocco announced that 13 countries involved in the $25 billion Nigeria-Morocco Gas Pipeline project would sign an Inter-Governmental Agreement for cross-border cooperation in the second quarter of 2024.

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