Groundbreaking ceremony

The Nigerian National Petroleum Corporation (NNPC) and its partners have held a groundbreaking ceremony for five mini-liquefied natural gas (LNG) plants in Ajaokuta, Nigeria’s Kogi State.

The construction of plants with a combined capacity of 97 million standard cubic feet of gas per day (mmscf/d), which was launched on January 30, 2025, is said to be in line with the Nigerian federal government’s Gas Revolution Agenda and reinforce its dedication to leveraging gas for sustainable development.

The plants will be called NNPC Prime LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete. NNPC has stakes in three (90% in Prime LNG, 50% in NGML/Gasnexus LNG, and 10% in BUA LNG), while the remaining two are developed by other private companies. The facilities are expected to come online in mid-2026.

According to NNPC, this milestone represents a strategic leap towards energy sufficiency, off-grid industrial support, and carbon emission reduction in the country. It is also said to align with the national vision of ‘Gas to Prosperity: Catalysing Nigeria’s Economic Growth.’

Speaking at the ceremony, the Group Chief Executive Officer (GCEO) of NNPC, Mele Kyari, reaffirmed the company’s commitment to the federal government’s gas-to-power aspirations.

“These Mini LNG facilities will ensure the efficient transportation of gas over long distances, providing a cleaner and cheaper source of energy to households, mobility, industries, and businesses. This is particularly important for regions that currently lack access to gas pipeline infrastructure,” noted Kyari.

According to the NNPC GCEO, natural gas will serve as a catalyst for industrialization, job creation, and economic diversification. He attributed the company’s strides in upstream and gas infrastructure projects to the support of Nigeria’s President Bola Tinubu.

Nigeria’s Minister for Petroleum Resources, Ekperikpe Ekpo, described the development as an unprecedented feat in the history of Nigeria’s oil and gas industry. According to him, natural gas will help speed up Nigeria’s industrialization, economic growth, and prosperity.

Ekpo pointed out the initiatives align with the government’s aspirations of harnessing Nigeria’s “abundant” gas resources for national economic development. He believes the project will reduce the country’s carbon footprint and enhance the well-being of its people.

Nigeria’s booming oil and gas sector has attracted interest from global players in recent times. In late January, the Admarine 504 jack-up rig by Saudi Arabia’s ADES Group, secured a drilling job in Nigerian waters. The rig is set to work with Brittania-U, an indigenous integrated energy company operating across Nigeria’s oil and gas value chain.

In December 2024, Shell’s subsidiary made a final investment decision (FID) for the Bonga North deepwater oil and gas project off the coast of Nigeria. The project will be developed as a subsea tie-back to an existing floating production, storage, and offloading (FPSO) unit called Bonga in OML 118, where production began in 2005.