THE Nigerian National Petroleum Company Limited (NNPC) said it had begun discussions with investors towards bringing back the Liquefied Natural Gas (LNG) projects and Brass and Olokola LNG projects worth about $30 billion investment.
The NNPCL’s Chief Financial Officer (CFO), Umar Ajiya, disclosed the plan on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday, September 19, according to a statement on Friday, September 20 by the company’s chief corporate communications officer, Olufemi Soneye.
He said the multi-billion dollar projects with significant opportunities for job creation, were, however, stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.
“In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX) and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class,” Ajiya said.
The ICIR can report that the Brass and Olokola LNG projects started under the administration of former President Olusegun Obasanjo estimated at $29.8 billion position as the largest gas infrastructure investments in Nigeria.
Located in Bayelsa state, the Brass LNG plant amounts to a 20 billion investment and the Olokola gas project in Ogun state $9.8 billion.
The projects, anticipated to boost Nigeria’s gas capacity by over 22 million tonnes per annum, have faced decades of delays due to unfavourable market dynamics and slow decision-making by the political class in the past.
Speaking at the forum, Ajiya said the earlier Nigeria makes smart decisions to bring partners to the table, the better, noting there are abundant gas resources in many parts of the world.
He commended the effort being put in place by the current administration of President Bola Tinubu on the Presidential Executive Orders on Oil & Gas Reforms.
“We are also happy to have the Petroleum Industry Act (PIA) [which] has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector,” Ajiya said.
He described Gastech as an avenue for NNPCL to learn new technologies which will help the company decarbonise its operations and promote its abundant LNG resources to the global market.
Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact.