Nigeria’s LNG ambitions rekindled: NNPCL moves to revive stalled projects

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has initiated talks with investors to revive two major Liquefied Natural Gas (LNG) projects: Brass LNG and Olokola (OK) LNG.

This move is part of the company’s ongoing efforts to harness Nigeria’s vast gas resources for economic growth and development.

Speaking on the sidelines of the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States, NNPC Ltd.’s Chief Financial Officer (CFO), Mr. Umar Ajiya, revealed that discussions are already underway to restart the stalled projects.

“Brass LNG and OK LNG hold significant potential for Nigeria, promising economic benefits such as job creation, power generation, increased revenue, and economic diversification,” Ajiya stated.

Both multi-billion-dollar projects had previously been put on hold due to unfavorable market conditions and delays in decision-making by political leaders.

Ajiya highlighted that low gas prices and the high capital expenditure (CAPEX) required for the projects initially discouraged investors. He also cited political delays as a factor that stalled progress.

“In the past, fluctuating gas prices and high CAPEX were deterrents for investors. Additionally, the slow decision-making process from the political class hindered the projects,” he explained.

However, Ajiya emphasised that NNPC Ltd., as a commercially driven entity, is now more focused on timely project development and execution.

He stressed the importance of swift action, noting that gas resources are abundant globally, and Nigeria needs to make smart, timely decisions to attract partners.

He also credited President Bola Ahmed Tinubu for driving new initiatives in the oil and gas sector through the issuance of Presidential Executive Orders on Oil & Gas Reforms.

“We are encouraged by President Tinubu’s support and the Petroleum Industry Act of 2021 (PIA), which offers fiscal incentives for investors and has rekindled hope in the energy sector,” Ajiya added.

The CFO further noted that Gastech provides a valuable platform for NNPC Ltd. to explore new technologies aimed at decarbonizing operations and promoting Nigeria’s LNG resources on the global stage.

Gastech is the leading global forum for energy experts, focused on creating a sustainable energy future while addressing global energy security and climate impact.

NNPC Ltd.’s renewed efforts to bring Brass and OK LNG back on track signal a significant push toward maximizing Nigeria’s gas potential for both local and international markets.