Pres. Tinubu Revolutionizes Nigeria’s Gas Sector, Sets New Benchmark for In-Country Utilization – NNPC Ltd Spokesman, Soneye

President Bola Tinubu is set to make history by hosting the groundbreaking ceremony for five mini-LNG plants in Ajaokuta, Kogi State, which has been hailed as unprecedented by stakeholders and Nigerians from all walks of life.

This milestone marks a significant step forward in Nigeria’s gas-to-power aspirations.

Several newsmen received information about the significance of this project and its impact on the nation’s energy landscape, according to Olufemi Soneye, CEO of NNPC Ltd.

Soneye also highlighted NNPC Ltd’s other gas and power projects nearing completion, showcasing the company’s commitment to transforming Nigeria’s energy sector.

Excerpts:

What justification does the NNPC Ltd. have for its recent resurgence of its attention to gas and power projects?

As you know, Nigeria is blessed with abundant natural gas, estimated at about 209 trillion cubic feet (tcf). Therefore, it is necessary to use this natural gas to power industries and promote economic growth and prosperity. Our unwavering support for the Federal Government’s efforts to improve Nigeria’s power generation, promote industrialization, and promote economic growth and development is supported by NNPC Limited’s recent renewed interest in gas and power projects, which is safe to say.

Everywhere you travel in this nation today, there is a pressing need to make use of natural gas to establish industries and generate power to spur economic growth, employment for our young, frail youth, and promote prosperity among Nigerians. Keep in mind that the government has made a conscious effort to make gas a catalyst for national economic growth and development. What we are doing is simple. We purposefully adhere to that agenda. The well-spread network of our gas pipeline infrastructure, which is spread across the nation, demonstrates this.

Tell us a bit about some of these gas-to-power projects.

There are a lot of them. The Obiafu-Obrikom-Oben (OB3), Ajaokuta-Kaduna-Kano (AKK) and Escravos Lagos Pipeline Systems (ELPS) gas pipelines are clear examples. They all aim to increase domestic gas usage. We are building enormous infrastructure in the country to make sure gas enters every region.

Last year, Mr. President commissioned the second phase of the AHL gas processing plant, the 300mmscuf/d ANOH gas processing plant, and the ANOH gas pipeline project. We are actively working with our partners to deliver a few Independent Power Projects (IPP) that we are currently involved in.

Another important project that we are working hard to finish on behalf of the Federal Government is the Nigeria-Morocco Gas Pipeline (NMGP). The purpose of this regional onshore and offshore gas pipeline is to transport Nigeria’s natural gas resources from Nigeria to about 13 West African nations and, eventually, Europe.

The project’s 5, 660 kilometer journey has already been accomplished in some impressive milestones. In pursuing this project, we are highlighting the project’s strategic significance for all 13 of the participating nations and, in turn, for the entire African continent. We are confident that the US$25b project will be a key factor in reducing Africa’s energy poverty.

We are equally confident that all of these gas pipeline projects will enable the necessary intervention to revitalize both our industrial corridors and even the rest of the world. We will continue to deliver more important projects for our nation. We are not relenting until Nigeria attains the desired levels of industrialisation, power generation and economic prosperity.

Other initiatives that include the establishment of several gas-based industries in strategically located areas of the country are also on the horizon. Additionally, this is intended to include chemical plants and fertiliser.

Experts in the energy sector always mention how difficult it is to secure funding for projects, especially those that involve large amounts of money being executed. How have you overcome this difficulty?

Sure, funding is key in delivering these gas projects. In our own situation, we make an effort to explain to our partners the potential benefits of gas development for both parties. Our partnership with organizations like the African Export Import (Afrexim) Bank and the proposed Africa Energy Bank to finance a crucial piece of energy infrastructure, like the NMGP, is a good illustration.

We let these financiers know that we are working together to provide the gas volumes that this nation urgently needs, in our conversations. So far, we have provided enough incentives, equity facilities and investment opportunities for investors. We’ve even gone so far as to securitize the goods that would transit through these pipeline networks in some cases.

Aside from these big-ticket gas pipeline projects, the NNPC Ltd is involved in Compressed Natural Gas (CNG) and mini-Liquefied Natural Gas (LNG) projects. Does that action also fall under the purview?

Yes, this is true. We have since signed onto the Federal Government’s Presidential CNG Initiative (PCNGI) in light of the necessity to use gas as a substitute fuel for all major highways. CNG is primarily used as a transportation fuel for buses, trucks, and some cars. It is also a useful fuel source for power generation. According to experts, using CNG in cars is 40% less expensive than using Premium Motor Spirit (petrol) in cars.

Last year, we inaugurated the 5.2mmscuf/d Ilasamaja (Lagos) CNG mother station. Also noteworthy are the 11 CNG stations that NNPC Retail Ltd. built in various locations in Lagos and Abuja. This year, we have collaborated with our partners to deliver 100 more CNG stations. These CNG stations are a brave step in expanding our CNG presence throughout the country and, evidently, demonstrate our commitment to diversifying Nigeria’s energy mix.

Through more collaboration, we have partnered with players such as NIPCO Gas Limited and other players to build more state-of-the-art CNG stations across the country, all in continuation of our quest to expand the nation’s CNG infrastructure, improve access to CNG and accelerate the adoption of cheaper and cleaner alternative fuel for vehicles such as buses, cars, Keke NAPEP etc.

This year, we shall take many more Final Investment Decisions (FIDs) to roll out additional CNG mother stations. Additionally, we have raised the efficiency of numerous CNG refueling stations nationwide. All of these efforts will significantly lower transportation costs and promote long-term economic growth and development.

How about the Mini-LNG projects?

Like the CNG, the LNG is a cleaner-burning alternative to traditional fuels such as petrol and diesel. It is used to generate electricity in power plants, and it is used in various thermal processing processes as a fuel source.

We have been working with our partners strategically since last year, signing various agreements to develop new gas projects in accordance with the Federal Government’s plan to increase gas usage. The mini-LNG projects are some of these initiatives.

I am happy to inform you that this coming week, on the 30th January 2025 specifically, we are holding the ground-breaking ceremony of five mini-LNG projects in Ajaokuta, Kogi State. Five mini-LNGs in one fell swoop! This is unprecedented in the history of Nigeria, it has never happened before. Under the theme “From Gas to Prosperity: Catalysing Nigeria’s Economic Growth”, the epic ceremony will see Mr. President performing the groundbreaking for brand new five mini-LNG projects namely: NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG and LNG Arete.

Again, why am I referring to it as unprecedented? This is because this is the first time such events have taken place. Imagine taking five Final Investment Decisions (FIDs) and holding groundbreaking milestones on these multi-million-dollar projects! The NNPC Ltd is proud to have led this development, with significant private sector participation. If anything, this response clearly demonstrates the private sector’s positive response to Mr. President’s and NNPC’s vision on gas, which is aimed at fostering gas-fueled prosperity while making energy more accessible and affordable to our citizens.

What are the specifics of these projects?

The NNPC Prime LNG is a Small-Scale LNG (SSLNG) project aimed at supporting FGN’s policy on Gas. The project has been designated a Special Purpose Vehicle (SPV) to support the project’s implementation and is located in Ajaokuta, Kogi State, on a 33 hectare of land. With equity holdings of 90:10, Silver Peaks Limited and NNPC Trading Limited (NTL), respectively, jointly own the SPV.

A 20MMSCFD Mini-LNG plant will be constructed in phases one and the other, with phase 1 being the development of a 7. 5MMSCFD plant. The LNG facility will liquefy natural gas supplied by the existing Oben-Ajaokuta pipeline, transport it using CNG-equipped trucks, regasify it, and then re-gasify it at each customer location for use. The project aims to deliver a cost-effective, long-term, dedicated, secure and reliable natural gas solution to industrial and commercial customers.

The BUA LNG is a partnership between the NGML and BUA Industries Limited (BUA) to develop a 700TPD (using 35MMSCFD) Mini-LNG plant in Ajaokuta, Kogi State. The LNG facility will liquefy natural gas supplied by the existing Oben-Ajaokuta pipeline, transport it using cryogenic trucks powered by CNG, and then regasify it at BUA’s Sokoto Cement plant.

In addition to supporting off-grid power generation under the Electricity Act 2023, Highland LNG is a Small-Scale LNG facility that will supply natural gas to industrial and commercial customers that are disconnected from Nigeria’s pipeline network. The facility also facilitates LNG-to-CNG conversion via the LCNG process, helping to support the government’s push for gas as a transportation fuel through the Presidential CNG Initiative (PCNGi).

A fully Nigerian-owned company with top-notch expertise and experience spanning the entire oil and gas value chain, LNG Arete Ltd. LNG Arete Ltd., a company established under Nigerian law in March 2023, hopes to offer affordable, clean, and secure liquefied natural gas as an alternative energy source.

What is your message to Nigerians in the wake of this groundbreaking?

Our goal is to use our natural gas resources to provide Nigerians with affordable energy, and we are still committed to doing so. While we execute some of these small scale mini-LNG projects (usually about 30mmscuf/d), we are also taking the lead in the Federal Government’s autogas initiative.

Another first for the nation is the signing of Memorandums of Understanding (MoUs) and project development agreements for floating LNG projects. So, many more good things from gas are coming.

All these initiatives are aimed at delivering turnkey gas solutions, equipment and infrastructure to the industrial, commercial, power generation, and automobile sectors. We want to use gas, in the end, to help us overcome these obstacles by enabling access to clean cooking fuel, autogas, and feedstock for other industries, creating wealth and promoting Nigerians’ well-being.

Source: Per Second News