NNPC seal LNG deal for domestic and international markets

The Nigerian National Petroleum Corporation Ltd. (NNPC) has inked two deals that aim to deliver of liquefied natural gas (LNG) to both domestic and international markets.

The firm sealed a memorandum of understanding with China’s Wison Heavy Industry Co. Ltd for the development of a floating LNG project in Nigeria that would target the international LNG market. On the other hand NNPC Prime LNG Ltd., a subsidiary of NNPC Trading Ltd., signed a supply, installation, and commissioning agreement with independent oil and gas company SDP Services.

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SSLNG Project

NNPC and Wison Heavy Industry Co. Ltd. will collaborate on a roadmap leading to an investment decision whose goal is to contribute to the commercialization of Nigeria’s abundant gas resources and generate foreign revenue from gas assets.

The SSLNG Project will be located at Ajaokuta in Kogi State, Central Nigeria, with a capacity of 421 metric tons per day. The project set to be operational by December 2024, aims to efficiently supply LNG to autogas/compressed natural gas (CNG) customers, as well as industrial and commercial customers nationwide in the domestic market.

NNPC Executive Vice President for Gas, Power, and New Energy, Olalekan Ogunleye, emphasized the significant impact of both projects on the commercialization of Nigeria’s gas resources and the country’s foreign revenue generation. He also highlighted the projects’ potential impact nationwide and their alignment with the President’s gas and power aspirations.

NNPC Trading Managing Director Lawal Sade emphasized that the SSLNG Project would support the growth of auto-gas initiatives in the country, with a commissioning timeframe of 12 months from execution.