On Thursday, the Federal Government started building five small liquefied natural gas plants in Ajaokuta, Kogi State.
The plants are intended to speed up access to gas so that Nigerians can use it more extensively.
In collaboration with PRIME LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete, Nigerian National Petroleum Company Limited is developing the plants.
With a combined capacity of 97.5 million standard cubic feet of petrol per day and an expenditure of $500 million, the project will be built on 33,000 hectares of land.
The “Decade of Gas” agenda aligns with the project’s multidimensional virtual pipeline construction.
In addition to producing compressed natural gas (CNG), liquefied petroleum gas (LPG), condensate, and liquefied natural gas (LPG), they will also increase the supply of gas.
Speaking at the ceremony, the GCEO of NNPC Ltd, Mele Kyari reaffirmed the company’s unwavering commitment to the Federal Government’s gas-to-power aspirations, noting that natural gas holds the key to unlocking a bright and prosperous future for Nigeria, and a catalyst for industrialisation, job creation, and economic diversification.
He said the projects play a critical role in increasing access to energy for millions of Nigerians, providing job opportunities, promoting economic growth and contributing to the nation’s Gross Domestic Product (GDP) while creating opportunities for gas commercialisation and supporting the Federal Government’s flare down initiatives.
“These Mini LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households, mobility, industries, and businesses. This is particularly important for regions that currently lack access to gas pipeline infrastructure.” Kyari added.
He attributed the Company’s strides in upstream and gas infrastructure projects to the unwavering support of President Bola Tinubu in utilizing gas resources to fuel industrialisation, achieve energy security and foster economic growth and development.
In his remarks, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, who described the development as an unprecedented feat in the history of Nigeria’s oil and gas industry, said natural gas remains a veritable vehicle for accelerating Nigeria’s industrialisation, economic growth and prosperity.
Ekpo, who assured NNPC Ltd. and its partners of the Federal Government’s support, stressed that the initiatives align with the Government’s aspirations of harnessing Nigeria’s abundant gas resources for National economic development, reducing the Nation’s carbon footprint and enhancing the well-being of Nigerians.
In his remarks, Kogi State Governor, Ahmed Usman Ododo expressed appreciation to the Federal Government for locating the 5 Mini-LNG plants in the State, describing it as a step forward in Nigeria’s march towards attaining energy security.
The Governor, who commended President Bola Ahmed Tinubu, the leadership of NNPC Ltd. and its partners for finding Ajaokuta and Kogi State worthy of gas investments added that the plants will unlock ample opportunities in investment, including direct and indirect employment for the State’s teaming population.
He assured of the State government’s support for the project through manpower supply, provision of adequate security and host community collaboration at the projects’ various sites from commencement to completion.
Also speaking, Chairman, of NNPC Ltd., Chief Pius Akinyelure said the milestone marks a significant advancement in Nigeria’s energy sector and aligns with the Federal Government’s Renewed Hope Agenda, signalling a new era of sustainable energy, energy security, and industrial growth.
Sen. Natasha Akpoti Uduaghan, Chairman, Senate Committee on Local Content, appreciated President Bola Tinubu for passing the executive order for establishing the plant.
“Gas is the future. It is a new paradigm shift for the country because the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project will be completed in the second quarter of 2025,” she said.
The Senatore said that the project would spur economic activities and revenue generation.
She also expressed optimism that the Ajaokuta steel company would resume production soon for enhanced economic growth.
NNPC Ltd. has stake in three of the five mini-LNG plants (90% in Prime LNG, 50% in NGML/Gasnexus LNG and 10% 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).
