The Nigerian National Petroleum Company Limited (NNPCL) has commenced discussions with investors towards bringing back two Liquefied Natural Gas (LNG) projects, Brass and Olokola LNG projects.
The move was part of the continued efforts of the company to maximise the nation’s abundant gas resources for economic development and prosperity.
NNPCL Chief Financial Officer (CFO), Mr. Umar Ajiya, made the disclosure, on Thursday, on the sidelines of the 2024 Gas Technology Conference and Exhibition (Gastech), ongoing in Houston, United States.
Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country.
The economic benefits, as stated in a release by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye, include job creation, power generation, revenue generation and economic diversification.
Ajiya stated that the multi-billion dollar projects 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,” the NNPCL CFO further stated in the release.
Ajiya described NNPCL as a commercially-driven Company which recognises timely project development and execution.
The NNPCL CFO said there are abundant gas resources in many parts of the world and, therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.
Ajiya commended President Bola Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil & Gas Reforms.
“We are also happy to have the Petroleum Industry Act (PIA) has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”
Ajiya 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. This is bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact.
