Nigerian govt flags off 5 Mini LNG plants

The Nigerian government on Thursday performed the groundbreaking ceremony of five Mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State.

The five Mini LNG plants include PRIME LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete.

According to NNPC Ltd, the project aims to deliver a cost-effective, long-term, dedicated, secure and reliable natural gas solution to industrial and commercial customers.

It said with its strategic central location in Ajaokuta and proximity to the northern market, the project will serve stranded industrial and commercial customers, adding that the gas from the project will provide suitable alternatives for customers using diesel and similar fuels as well as provide complementary backup gas solutions to customers currently running on pipeline gas.

The Mini-LNG project, according to NNPC Ltd, is a multifaceted virtual pipeline development in line with the federal government’s ‘Decade of Gas’ agenda.

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

“All in all, the plants have a combined capacity of 97 million standard cubic feet of gas per day (mmscf/d). This unprecedented partnership between NNPC Ltd and private investors represents a strategic leap towards energy sufficiency, off-grid industrial support and carbon emission reduction in the country,” the NNPC said.

In his speech shortly before performing the groundbreaking, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, said the project signifies the seriousness of the federal government under the leadership of President Bola Tinubu, attached to deepening utilisation of the country’s abundant natural gas resources.

He said natural gas is a veritable vehicle for accelerating Nigeria’s industrialisation, economic growth and prosperity, which is also working to achieve the nation’s commitments to a just and equitable energy transition.

“I commend the outstanding efforts of NNPC Ltd and its partners who worked round the clock to achieve this milestone event as we look forward to a smooth and safe project delivery of all five plants.

“As always, the Ministry of Petroleum Resources (Gas) stands with you, NNPC Ltd and partners, to support initiatives that align with our goals of harnessing Nigeria’s abundant gas resources for national economic development, reducing the nation’s carbon footprint and enhancing the well-being of our people,” he said.

In his address, Mele Kyari, the NNPC group chief executive officer, said the project will be delivered in good time, noting that the equipment for the take-off of the gas plant has arrived in Nigeria and is being cleared at the ports.

“This project will be delivered in good time. This is not just groundbreaking. Equipment for this location is on the ground at the ports, and we have a delivery date for all the projects. They will be delivered on schedule. The president was very clear that this is the time for the gas revolution and that we have enormous gas in Nigeria. He sees gas as the vehicle to ensure the industrialisation of Nigeria, and it must be done. We won’t want stories,” Mr Kyari said.

He added that the compressed natural gas initiative being implemented by the federal government cannot succeed without access to gas, noting that this facility is part of the plan to ensure cheap access to gas for Nigerians.

“The drive for this project in this location is coming from the president. We and our partners believe that this is a very good investment for our country.”

He commended the governor of Kogi State and the host communities for their support so far for the project.

“We can’t do this without the understanding of host communities, and we have seen good support from the people of this community, and Kogi State will be the first beneficiary of this project. We at NNPC must deliver all the gas projects in this country, and this will be the backbone of the energy sector and Nigeria’s development. This will bring gas closer to our consumers and at a cheaper cost, and we will see the value that this will create for our country,” he added.

Also speaking, the NNPC board chairperson, Pius Akinyelure, said the project aligns with the Renewed Hope Agenda of the President as it signals a new era of sustainable energy and energy security for Nigerians.

He said the project is offering a transformative opportunity to drive economic development in the country.

“This plant demonstrates our commitment to supporting the federal government in the area of improving power generation, boosting industrialisation and fostering energy security. It represents a vital component of our energy revolution, and it plays a pivotal role in driving the nation’s gas industrialisation agenda.

“The project will also accelerate Nigeria’s economic growth and contribute to sustainable development. The NNPC remains committed to harnessing Nigeria’s gas resources to drive national prosperity for a better, cleaner, sustainable future for Nigeria’s economy,” he said.

The Governor of Kogi State, Usman Ododo, in his speech at the event, said the project will drive the implementation of the gas revolution agenda of the President.

He added that the project would unlock over $500 million in investment and would ensure huge benefits for Nigeria, create jobs, stimulate local businesses, and boost infrastructure in the host communities.

“This project is a testament to what can be achieved with partnership. The groundbreaking will set the stage for a brighter and more prosperous future for Kogi State and Nigeria. This project aligns with our vision of leveraging clean energy for driving industrialisation and will boost the state aspirations to become an industrial hub,” he added.