The Nigerian National Petroleum Corporation (NNPC) Limited has reignited discussions with investors aimed at resurrecting two major Liquefied Natural Gas (LNG) projects: Brass LNG and Olokola LNG. This announcement was made by the Chief Financial Officer (CFO) of NNPC, Mr. Umar Ajiya, during the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, Texas.
The Olokola gas project, valued at $9.8 billion, and the Brass LNG plant, estimated at $20 billion, represent a combined investment of $29.8 billion, marking them as pivotal to Nigeria's gas infrastructure landscape. Together, these projects are expected to enhance Nigeria's gas capacity by over 22 million tonnes per annum, positioning the country as a key player in the global energy market.
Ajiya explained that the long-delayed projects have faced numerous challenges over the years, including unfavorable market conditions and slow decision-making processes within the political sphere. “In the past, fluctuating gas prices and high capital expenditure (CAPEX) discouraged potential investors, compounded by a lack of timely decisions from the political class,” he stated.
However, he emphasized that NNPC is committed to a commercially driven approach that prioritizes swift project development and execution. “With abundant gas resources available globally, Nigeria must act decisively to attract investors,” Ajiya noted.
He also commended President Bola Ahmed Tinubu for his support of new initiatives within the oil and gas sector, particularly through the Presidential Executive Orders on Oil & Gas Reforms. “The Petroleum Industry Act of 2021 (PIA) has introduced fiscal incentives that create a more favorable environment for investment, instilling renewed hope in the energy sector,” he added.
The revival of the $20 billion Brass LNG project and the Olokola gas project is expected to create thousands of jobs, stimulate domestic gas demand, generate electricity, and diversify federal revenue streams. Historically, the Brass project, initiated during President Olusegun Obasanjo’s administration, aimed to capitalize on Nigeria’s vast natural gas reserves while addressing the increasing global demand for clean energy.
Despite the potential, both projects have stalled due to the absence of Final Investment Decisions (FID) and political disagreements. Ajiya reiterated the urgency of addressing these obstacles to leverage Nigeria’s gas resources effectively.
Gastech provides a vital platform for NNPC Ltd. to engage with global energy experts and explore new technologies for decarbonizing operations, promoting Nigeria’s LNG resources on the world stage. As discussions progress, the resumption of the Brass and Olokola LNG projects signals a critical step toward maximizing Nigeria’s gas potential for both domestic and international markets.
