The Nigeria National Petroleum Company Limited (NNPCL) has commenced discussions with investors to bring back two Liquefied Natural Gas (LNG) projects: Brass and Olokola LNG.
This step is in line with the company's continued bid to maximize the nation’s abundant gas resources. The NNPC Limited's Chief Financial Officer (CFO), Mr. Umar Ajiya, disclosed this on the sidelines of the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States, on Thursday.
A statement from the company's Chief Corporate Communications Officer, Olufemi Soneye, said the Brass LNG and OK LNG are two projects that can create jobs, boost power generation, grow revenue, and diversify Nigeria's economy.
The statement said the multi-billion dollar projects were stalled due to unfavorable market dynamics and slow decision-making by past political leaders.
“In the past, gas prices went down, the economics of the projects meant a high capital expenditure (CAPEX), and this was a disincentive for investors and partners. Also, there was slow decision-making by the political class," the CFO added.
While describing NNPCL as a commercially driven company that recognizes timely project development and execution, the CFO said Nigeria needed to make smart decisions early because of the abundant gas resources in many parts of the world.
Mr. Ajiya commended President Bola Tinubu for his support in driving new projects in the gas industry through the Presidential Executive Orders on Oil & Gas Reforms.
“We are also happy to have the Petroleum Industry Act (PIA) that has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector,” he said.
He described Gastech as an avenue for NNPCL to learn new technologies to help the company decarbonize 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 toward global energy security for lasting climate impact.
