President Bola Tinubu is set to inaugurate the construction of five mini-liquefied natural gas (LNG) projects in Ajaokuta, Kogi State, on January 30, marking a significant milestone in Nigeria’s energy sector.
According to Olufemi Soneye, Chief Corporate Communications Officer of the Nigerian National Petroleum Company (NNPC) Limited, the groundbreaking event will feature projects including Highland LNG, LNG Arete, NNPC Prime LNG, NGML/Gasnexus LNG, and BUA LNG. Soneye described the initiative as unprecedented, noting that it is the first time multiple Final Investment Decisions (FIDs) and groundbreaking ceremonies for such projects are being undertaken simultaneously.
“This is virtually the first time such engagements are being held. Imagine taking five FIDs and performing groundbreaking milestones on these multi-million-dollar projects,” Soneye said.
Under the theme “From Gas to Prosperity: Catalysing Nigeria’s Economic Growth,” the projects aim to foster economic growth and provide affordable energy solutions. The NNPC Prime LNG project, a small-scale LNG initiative, will sit on 33 hectares of land in Ajaokuta and is being developed through a special purpose vehicle (SPV) jointly owned by NNPC Trading Limited and Silver Peaks Limited, with a 90:10 equity split.
The NGML/Gasnexus LNG project will involve the phased construction of a 20MMSCFD Mini-LNG plant, starting with a 7.5MMSCFD facility. Gas from the Oben-Ajaokuta pipeline will be liquefied, transported via cryogenic trucks, and regasified for industrial and commercial use.
The BUA LNG project, a collaboration between NGML and BUA Industries Limited, will support operations at BUA’s Sokoto Cement Plant through a 700TPD Mini-LNG facility. Highland LNG will cater to customers not connected to Nigeria’s pipeline network and support off-grid power generation. LNG Arete Ltd., a fully Nigerian-owned company, will leverage its expertise to provide LNG as an alternative energy source.
“These projects demonstrate the private sector’s positive response to President Tinubu and NNPC’s vision for a gas-fueled economy,” Soneye said.
Additionally, Soneye highlighted NNPC’s ongoing efforts to expand compressed natural gas (CNG) infrastructure nationwide, including plans to roll out 100 new CNG stations in 2025. He noted that CNG is 40% cheaper than petrol and efficient for power generation, further aligning with Nigeria’s clean energy goals.
These initiatives, Soneye said, will revolutionize Nigeria’s energy sector, providing solutions across industrial, commercial, power generation, and transportation sectors while driving economic growth.
