By Tochukwu Bliss, Abuja
To maximise Nigeria’s abundant gas resources for economic development and prosperity, NNPC Ltd said it has begun discussions with investors towards bringing back two liquefied natural gas (LNG) projects, Brass and Olokola LNG projects.
The Company’s Chief Financial Officer (CFO), Umar Ajiya, was quoted as saying this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, Texas, United States, on Thursday.
The two LNG projects are said to have manifold economic benefits for the country, including job creation, power generation, revenue generation and economic diversification.
A statement by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the multi-billion dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.
“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.
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.
While describing NNPC Ltd as a commercially-driven Company, which recognises timely project development and execution, the CFO noted that there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.
Mr Ajiya commended President Tinubu for his support in driving new projects in the industry through the Presidential Executive Orders on Oil & Gas Reforms.
“We are also happy to have the Petroleum Industry Act (PIA) has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector,” he added.
Mr. Ajiya described Gastech as an avenue for NNPC Ltd to learn new technologies that will help to decarbonise 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 towards global energy security for lasting climate impact.
