NNPC begins construction of five LNG projects in Ajaokuta

The Nigerian National Petroleum Company (NNPC) Limited has flagged off the construction of five mini-liquified natural gas (LNG) projects in Kogi state

The groundbreaking ceremony took place in Ajaokuta on Thursday.

The projects are the prime LNG, NGML/Gasnexus LNG, BUA LNG, highland LNG, and LNG Arete.

Speaking at the event, Mele Kyari, the group chief executive officer (GCEO) of the NNPC, said the plants will be delivered on time.

Kyari said the equipment for the take-off of the gas plants has already arrived in Nigeria and undergoing clearance at the ports.

“This project will be delivered in good time,” the GCEO said.

“This is not just a groundbreaking. Equipment for this location are on ground at the ports and we have delivery date for all the projects and 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 (President Bola Tinubu) sees gas as the vehicle to ensure the industrialisation of Nigeria, and it must be done. We won’t want stories.”

Kyari also said the federal government’s compressed natural gas initiative cannot succeed without access to gas.

He noted that the facilities are part of plans 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 added.

‘LNG PLANTS WILL ATTRACT $500M INVESTMENT, CREATE JOBS FOR HOST COMMUNITY’ 

On his part, Usman Ododo, Kogi governor, said the projects will unlock $500 million investment, create jobs for Nigerians, drive suitable development, and combat climate change issues.

“These projects are a bold leap forward in reducing carbon emissions, promoting energy independence, and aligning with global efforts to combat climate change,” Ododo said.

“As a member of a responsible global community, our President is supporting excellent initiatives like ensuring maximum utilisation of our energy potential. Beyond their environmental impact, the economic and social benefits of these projects cannot be overstated.

“The establishment of these energy plants will create significant job opportunities to lead local economies and improve critical infrastructure in our communities.”

Further speaking on the benefits, Shuaibu Audu, minister of steel development, said the mini-LNG plants will enhance energy security and also position Nigeria as a key player in the global energy market. 

“The benefits of such projects are immense, paving the way for a sustainable and prosperous future through massive creation of jobs, millions of jobs will be created, as well as adding value to the GDP,” Audu said.

“It is important to note that the government has remained focused on its programme of bringing a nuclear steel plant back to life, and this is reflected in the current effort which has led the federal government into signing a historic memorandum of understanding with a Russian TPP consortium aimed at the rehabilitation, completion, and operation of the steel plant.”

Michael Oluwagbemi, programme director of the presidential compressed natural gas initiative (PCNGi), said Kogi is perfectly positioned to facilitate efficient and cost-effective gas distribution across the country. 

“This groundbreaking LNG hub by NNPC Limited and partners will undoubtedly catalyze this potential,” Oluwagbemi said.

“Recognising the challenges of gas access in the north east and north west, mini-LNG plants like the ones being launched today will play a critical role in bridging this gap while awaiting the completion of the Ajaokuta–Kaduna–Kano pipeline.”

TheCable understands that NNPC is a joint partner on three of the plants.

Prime LNG is said to be jointly owned by NNPC Trading Limited and Silver Peaks Limited with an equity of 90:10. Its completion date is the second half (H2) of 2025.

Other NNPC partnerships included the BUA LNG, expected to be completed in the fourth quarter (Q4) of 2025; and Gasnexus LNG (a subsidiary of Axxella), to be completed in half (H2) of 2026.

Below are photos from the flag off.