NNPC Flags Off Construction of Five Mini-LNG Plants in Ajaokuta

The Nigerian National Petroleum Company Limited (NNPC) and its partners yesterday commenced the construction of five mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State, a project valued at approximately $500 million.

This groundbreaking ceremony marks the beginning of construction for NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete. The NNPC holds stakes in three of these plants: 90% in Prime LNG, 50% in NGML/Gasnexus LNG, and 10% in BUA LNG. The remaining two plants are privately developed. Combined, these plants boast a capacity of 97 million standard cubic feet of gas per day (mmscf/d).

At the ceremony, NNPC Group Chief Executive Officer Mele Kyari emphasized the crucial role of these projects in advancing the federal government’s gas-to-power aspirations. “Natural gas holds the key to unlocking a bright and prosperous future for Nigeria,” he stated, highlighting its potential to drive industrialization, create jobs, and diversify the economy.

“These mini-LNG facilities will ensure efficient gas transportation over long distances, providing a cleaner and cheaper energy source for households, businesses, and industries, especially in regions lacking access to existing gas pipeline infrastructure,” Kyari explained. He emphasized the strategic location of Ajaokuta, with its existing pipeline infrastructure, making it an ideal hub for these projects.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, echoed Kyari’s sentiments, emphasizing the importance of natural gas in accelerating Nigeria’s industrial growth and economic prosperity. He assured NNPC and its partners of the federal government’s unwavering support for these initiatives, which align with the government’s vision of harnessing the nation’s abundant gas resources for sustainable development.

Kogi State Governor Ahmed Usman Ododo expressed his gratitude to the federal government for selecting Ajaokuta as the location for these projects. He assured the state government’s full cooperation, including providing manpower, security, and facilitating host community collaboration.

NNPC Chairman Chief Pius Akinyelure highlighted the significance of private sector involvement in these projects, with a combined investment of approximately $500 million. He emphasized that this demonstrates the growing momentum behind the president’s vision of a gas-fueled prosperous Nigeria.

The NNPC Prime LNG plant, one of the five projects, is expected to process gas purchased from upstream producers, generating LNG, Liquefied Petroleum Gas (LPG), and condensates as by-products.