The Nigeria National Petroleum Company Limited (NNPCL) has revealed plans to revive two Liquefied Natural Gas (LNG) projects: the Brass and Olokola LNG projects.
With these projects, the NNPCL seeks to maximize Nigeria’s abundant gas resources for economic development and prosperity.
According to Mr. Umar Ajiya, NNPCL’s Chief Financial Officer (CFO), the company has initiated discussions with investors to bring back the Brass and Olokola LNG projects.
Ajiya spoke at the ongoing 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States, on Thursday.
He attributed the suspension of the multi-billion-dollar projects to unfavorable market dynamics and slow decision-making by the government.
Ajiya revealed that the LNG projects offer many economic benefits for the country.
His words: “Brass LNG and OK LNG are two projects with the potential for manifold economic benefits, including job creation, power generation, revenue generation, and economic diversification.
“However, the multi-billion-dollar projects were stalled due to unfavorable market dynamics and slow decision-making by the political class in the past.
“In the past, gas prices fell, and the economics of the projects required high capital expenditure (CAPEX), which was a disincentive for investors and partners. Additionally, there was slow decision-making by the political class,” Ajiya added.
He further described NNPC as a commercially driven company that recognizes the importance of timely project development and execution.
Ajiya explained, “Abundant gas resources exist in many parts of the world, and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.”
“We are also pleased to have the Petroleum Industry Act, 2021 (PIA), which has provided fiscal incentives for investors and created an enabling environment that has rekindled hope in the energy sector,” he stated.
Speaking about Gastech, Ajiya noted that it is an avenue for NNPC to learn new technologies that will help the company tap into the global market with its abundant LNG resources.
According to NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, in a statement on Friday, “Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways toward global energy security for lasting climate impact.”