COP28: NNPC Ltd seals two deals in Dubai, to comercialise LNG for domestic and International market

In its bid to commercialise and enhance Nigeria’s gas revenue, the Nigerian National Petroleum Company Ltd. (NNPC Ltd) has signed two major deals to deliver LNG to the domestic gas market and the international LNG market.

For the International LNG market, NNPC Ltd. signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG project in Nigeria.

The oil firm also partnered with SDP Services Ltd, an independent oil and gas company, for a 421-tonnes per day LNG project targeting the domestic LNG market, and a time frame of 12 months was agreed on for the execution to the commissioning of the project.

During the two separate signing ceremonies held on the sidelines of the ongoing United Nations Climate Change Conference (also known as COP28), the Floating LNG MoU was signed by the Executive Vice-President, Gas, Power & New Energy, Mr Olalekan Ogunbayo, on behalf of NNPC Ltd.

Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, NNPC Trading Ltd., Mr. Lawal Sade, on behalf of NNPC Prime LNG Ltd while Mr. Abhinav Modi, Managing Director of SDP Services Ltd, signed on behalf of his company.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Ogunbayo said NNPC Ltd is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialization efforts through the floating LNG Project.

“We see both projects as having enormous impact all over the country because they are central to the commercialization of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets.

“It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country,” he said.

Also, in his address after the signing, the MD NNPC Trading Ltd, Mr. Lawal Sade said the SSLNG Project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

Sade said: “We are looking at a time-frame of 12 months from execution to the commissioning of the project.

“The project will deliver about 420 tonnes per day of LNG per day into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate.”