In a strategic move to capitalize on Nigeria’s vast gas resources for economic growth, NNPC Ltd. has initiated discussions with investors to revive two major Liquefied Natural Gas (LNG) projects: Brass LNG and Olokola LNG (OK LNG). The projects, which have the potential to significantly boost Nigeria’s economy, had been stalled for years due to unfavorable market conditions and delays in decision-making.
NNPC Ltd.’s Chief Financial Officer, Mr. Umar Ajiya, made the announcement during the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, USA. He highlighted the immense economic benefits these projects could bring, including job creation, power generation, increased revenue, and economic diversification.
“The past delays were largely due to falling gas prices and high capital expenditure, which discouraged investors and partners. Political indecision also slowed progress,” said Ajiya. “However, with the right environment now in place, it’s time to make smart decisions and bring investors back to the table.”
Ajiya emphasized that NNPC Ltd. is now operating as a commercially driven entity, prioritizing timely project development and execution. He noted that global gas resources are abundant, making it crucial for Nigeria to act swiftly to remain competitive.
The CFO also praised President Bola Ahmed Tinubu for his proactive support through the issuance of Presidential Executive Orders aimed at reforming the oil and gas sector. He further credited the Petroleum Industry Act of 2021 (PIA) for providing the fiscal incentives necessary to attract investors back into the energy sector.
Gastech, which serves as the world’s leading forum for advancing sustainable energy solutions, provided NNPC Ltd. with the opportunity to explore new technologies that could help decarbonize its operations while promoting Nigeria’s LNG resources to a global market.
With these renewed efforts, NNPC Ltd. aims to reposition Nigeria as a key player in the global LNG market, leveraging its abundant gas reserves to drive economic prosperity and energy security.
