BUA Group eyes energy market, to set up 700 tons per day LNG plant

BUA Group, an industrial conglomerate, has signed an agreement with CIMC Enric, to establish a 700-ton-per-day mini liquified natural gas (LNG) project in Nigeria.

CIMC Enric is an equipment manufacturer and integrated engineering services provider in China, a statement from BUA said.

The agreement, signed on Monday at a ceremony at the firm’s headquarters in Lagos, was in partnership with Axxela — a natural gas value chain company, formerly known as Oando Gas & Power Limited.

BUA Group said the collaboration is a major turning point in its entry into the energy industry and reinforces its dedication to sustainable energy solutions across its business operations.

Speaking on the landmark project, Abdul Samad Rabiu, chairman of BUA Group, said in keeping with its short- to long-term environmental, social and governance (ESG) commitments and sustainability initiatives, the group remains committed to using cleaner, energy-efficient sources for its activities throughout Nigeria.

Rabiu said BUA already uses gas as a major energy source in its over 1,000MW captive power plants for operations across Nigeria.

He noted that the mini LNG project, once completed, will increase the all-year availability of cleaner energy and support the firm’s growing industrial power demands.

“We are excited about the prospects of this project and look forward to a fruitful collaboration with CIMC ENRIC and Axxela,” the BUA chairman said.

According to the statement, the agreement was signed by the management representatives of BUA Group, CMIC Enric, and Axxela Group.

The company said the agreement underscored “the project’s anticipated impact on the regional energy landscape in line with the Nigerian Government’s push to diversify its energy commitments”.

BUA Group said it will continue to invest in cutting-edge technology and infrastructure that will improve both its business and the communities it serves.