Nigeria Launches Five Mini-LNG Plants in Ajaokuta

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The Nigerian government has advanced its efforts to enhance natural gas utilisation with the inauguration of five mini-liquefied natural gas (LNG) plants in Ajaokuta, Kogi State, northcentral Nigeria. The projects, executed by the Nigerian National Petroleum Company (NNPC) Limited in collaboration with its partners, mark a significant milestone in expanding domestic gas supply and energy accessibility.

The plants, with a combined capacity of 97 million standard cubic feet of gas per day (mmscf/d), aim to support domestic gas supply and economic growth.

Speaking at the groundbreaking ceremony, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described the initiative as a historic milestone, underscoring the government’s commitment to maximising Nigeria’s vast natural gas resources for sustainable energy development.
Ekpo, who assured NNPC and its partners of the Federal Government’s support, stressed that the initiatives align with the government’s aspirations of harnessing Nigeria’s abundant gas resources for national economic development, reducing the nation’s carbon footprint and enhancing the well-being of Nigerians.

“I commend the outstanding efforts of NNPC Ltd. and its partners who worked round the clock to achieve this milestone event,” Ekpo said, praising the teamwork that made the projects possible. “As we look forward to a smooth and safe project delivery of all five plants, the Ministry of Petroleum Resources (Gas) stands with you, NNPC Ltd. and partners, to support initiatives that align with our goals.”

The ceremony signalled the commencement of construction works on the five Mini-LNG plants, namely: NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.

The NNPC Ltd says that it has a stake in three of the five mini-LNG plants (90% in Prime LNG, 50% in NGML/Gasnexus LNG and 10% in BUA LNG), while Highland LNG and LNG Arete are
developed by other private companies.

Speaking at the ceremony, the Group CEO of NNPC Ltd, Mele Kyari, reaffirmed the company’s unwavering commitment to the Federal Government’s gas-to-power
aspirations, noting that natural gas holds the key to unlocking a bright and prosperous future for Nigeria and a catalyst for industrialisation, job creation, and economic diversification.

He said the projects play a critical role in increasing access to energy for millions of Nigerians, providing job opportunities, promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP) while creating opportunities for gas commercialisation and supporting the Federal Government’s
flare-down initiatives.

“These Mini LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households,
mobility, industries, and businesses. This is particularly important for regions that
currently lack access to gas pipeline infrastructure,” Kyari added.

He attributed the company’s strides in upstream and gas infrastructure projects to the unwavering support of President Bola Tinubu in utilising gas resources to fuel industrialisation, achieve energy security and foster economic growth and development.

In his remarks, Kogi State Governor, Ahmed Usman Ododo, expressed appreciation to the Federal Government for locating the 5 mini-LNG plants in the state, describing it as a step forward in Nigeria’s march towards attaining energy security.

The Governor, who commended President Bola Ahmed Tinubu, the leadership of NNPC Ltd., and its partners for finding Ajaokuta and Kogi state worthy of gas investments, added that the plants will unlock ample opportunities in investment, including direct and indirect employment for the state’s teaming population.

He assured of the state government’s support for the project through manpower
supply, provision of adequate security and host community collaboration at the projects’ various sites from commencement to completion.

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