NNPCL seals Deals for Local, International Gas Markets to boost Revenue
The Nigerian National Petroleum Company Limited (NNPCL) has signed two major Agreements to deliver Liquefied Natural Gas (LNG) to the Domestic Gas Market and the International LNG Market.
Held on the sidelines of the UN Climate Change Conference (COP28), NNPC Limited signed a Memorandum of Understanding (MoU) with Wison Heavy Industry Company Limited, a Chinese Company, for the development of Floating LNG Project, targeting the International Market.
Also, 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 Floating LNG MoU was signed by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye, on behalf of NNPC Limited, and Kai Xu, Managing Director, Wison Limited on behalf of his Company.
A Statement on Wednesday by the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, said the development would further boost Natural Gas utilisation in the Country and enhance Nigeria’s Gas Revenue.
Speaking shortly after the Signing Ceremony, Ogunleye said NNPCL was committed to delivering Gas to Industries Nationwide and accelerating the Company’s Gas Commercialisation efforts through the Floating LNG Project.
“We see both Projects as having enormous impact all over Nigeria because they are central to the commercialisation of Nigeria’s abundant Gas Resources and ensuring that our Country earns 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 said.
Similarly, the Small-Scale LNG (SSLNG) Project Agreement was signed by the Managing Director, NNPC Trading Limited, Lawal Sade, on behalf of NNPC Prime LNG Limited while Abhinav Modi, Managing Director, SDP Services Limited signed on behalf of his Company.
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.
Also, in his address after the Deal, 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 Timeframe of 12 months from Execution to the Commissioning of the Project.
“The Project will deliver about 420 tonnes 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 Limited to deliver the Projects within schedule and in the most cost-effective manner.
Both Parties agreed to work together to chart a Roadmap for the Project Development that will lead to an Investment Decision.
The LNG Project is expected to be operational by December 2024.
Credit: NNPCL PR