A subsidiary of the Nigerian National Petroleum Corporation (NNPC) has signed a contract for an LNG plant in Ajaokuta.

A subsidiary of the Nigerian National Petroleum Corporation (NNPC) has signed a contract for an LNG plant in Ajaokuta.

FastNews reports that Nigerian Gas Marketing Company, a subsidiary of Nigerian National Petroleum Corporation, has signed an Engineering, Procurement, Construction, and Commissioning contract for the construction of a small-scale liquefied natural gas plant in Ajaokuta, Kogi State, in collaboration with Transit Gas Nigeria Limited.

According to a statement issued on Friday by Transit Gas, a subsidiary of Axxela Limited, the plant will have a capacity of 5 million standard cubic feet per day and will be the first phase of a 20mmscfd development.

Mr Bolaji Osunsanya, Chief Executive Officer of Axxela, stated at the official contract signing ceremony, “This official contract signing ceremony is a major landmark for us.” We are excited to have reached this critical milestone in the development of this multifaceted virtual pipeline.

“With the recent declaration of the ‘Decade of Gas’ by the Federal Government of Nigeria, we believe that collaborations of this nature are important to actualize the government’s aspiration. With all hands on deck, the project is on the right footing for timely completion to unlock value for stakeholders and Nigeria as a nation.”

According to the statement, the gas liquefaction project is in line with Axxela’s mission to deliver innovative solutions that create sustainable and efficient energy utilization for the benefit of all stakeholders.

It said with its strategic central location in Ajaokuta and proximity to the Northern market, the project would serve stranded industrial and commercial customers currently using diesel and similar fuels, helping to improve their competitive advantage.

The statement said it would also serve as a catalyst to further industrialization and open up areas without gas pipeline infrastructure to a cheaper, cleaner, and more environmentally friendly fuel.

The Group Managing Director, NNPC, Mallam Mele Kyari, represented by the Group Executive Director and Chief Financial Officer, NNPC, Mallam Umar Ajiya, said, “For us as a government, natural gas remains a transition fuel for Nigeria, hence any project that seeks to further this agenda is a welcome development.

“This is a very significant project that will help reduce the challenges of using gas up-country. The successful completion of the project will give further credence to the gas utilization program of the government given Nigeria’s abundant natural gas resources.”