By Ayomide Otitoju
President Bola Ahmed Tinubu is set to perform the groundbreaking ceremony for five mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State, on January 30, 2025. The projects, described as a historic milestone, aim to advance Nigeria’s gas-to-power aspirations and drive industrialization.
NNPC Limited’s Chief Corporate Communications Officer, Olufemi Soneye, highlighted the significance of the development during a media briefing, stating that the initiative aligns with the Federal Government’s agenda to harness Nigeria’s abundant gas resources to boost power generation, foster industrial growth, and create jobs.
Driving Nigeria’s Gas Agenda
Soneye noted that Nigeria boasts over 209 trillion cubic feet (tcf) of natural gas reserves, positioning the country as a key player in global energy. He emphasized the importance of leveraging this resource to catalyze economic growth and ensure prosperity for Nigerians.
“NNPC’s commitment to gas and power projects is rooted in our goal to improve power generation and support economic growth. We are building extensive gas pipeline infrastructure to ensure gas reaches every corner of the country,” he said.
Some of NNPC’s flagship gas projects include the Obiafu-Obrikom-Oben (OB3), Ajaokuta-Kaduna-Kano (AKK), and Escravos Lagos Pipeline Systems (ELPS), all designed to enhance domestic gas utilization. Additionally, the company is advancing the Nigeria-Morocco Gas Pipeline (NMGP), a $25 billion project aimed at delivering natural gas to 13 African countries and Europe.
Five Mini-LNG Plants
The upcoming ceremony will unveil five mini-LNG projects under the theme, “From Gas to Prosperity: Catalysing Nigeria’s Economic Growth.” The projects include:
NNPC Prime LNG: A Small-Scale LNG (SSLNG) plant located on 33 hectares in Ajaokuta, jointly owned by NNPC Trading Limited and Silver Peaks Limited.
NGML/Gasnexus LNG: A phased mini-LNG project starting with a 7.5 million standard cubic feet per day (MMSCFD) plant, utilizing gas from the Oben-Ajaokuta pipeline.
BUA LNG: A partnership with BUA Industries for a 700-ton-per-day plant to supply BUA’s Sokoto Cement plant.
Highland LNG: A facility focused on off-grid power generation and gas-to-CNG conversion.
LNG Arete: A fully Nigerian-owned project committed to delivering cost-effective and clean LNG solutions.
“These projects are unprecedented,” Soneye remarked. “It is the first time five Final Investment Decisions (FIDs) and groundbreaking events for such high-value projects are happening simultaneously.”
Expanding Access to Gas
NNPC is also pursuing other gas initiatives, including Compressed Natural Gas (CNG) stations and floating LNG projects. Last year, the company inaugurated 11 CNG stations in Lagos and Abuja, with plans to deliver 100 more by the end of 2025.
“These efforts are part of our strategy to diversify Nigeria’s energy mix and reduce transportation costs through cleaner and cheaper fuels,” Soneye added.
Financing Challenges and Solutions
Addressing financing challenges, Soneye highlighted partnerships with institutions like the African Export-Import Bank and the proposed Africa Energy Bank. “We emphasize the critical role of gas in Nigeria’s development, offering equity facilities and securitizing products to attract investments,” he explained.
A Promising Future
As the NNPC continues its push for gas-fueled industrialization, Soneye reiterated the company’s commitment to delivering sustainable energy solutions. “Our goal is to use gas to transform Nigeria by providing electricity, clean cooking fuel, and feedstock for industries, ultimately improving the wellbeing of Nigerians,” he said.
The groundbreaking ceremony marks a pivotal step toward unlocking Nigeria’s gas potential, fostering economic growth, and addressing the country’s energy needs.
