NNPC seeks investors to revive Brass, Olokola LNG projects

Nigerian National Petroleum Company Limited

The Nigerian National Petroleum Company Limited has stated that it has begun discussions with investors to revive the Brass and Olokola Liquefied Natural Gas projects.

NNPC Ltd.’s Chief Financial Officer, Umar Ajiya, disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition holding in Houston, United States.

A statement by the Chief Corporate Communications Officer, Olufemi Soneye, on Friday, highlighted this effort as part of the ongoing aim to maximise the nation’s abundant gas resources for economic development and prosperity.

The Brass LNG and Olokola LNG are two LNG projects with the potential of manifold economic benefits for the country which include job creation, power generation, revenue generation and economic diversification.

The multi-billion-dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political office holders in the previous administrations.

The CFO said, “In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure, and this was a dis-incentive 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 said 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.

Ajiya also commended President Bola 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, 2021 which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”

On the importance of the conference, Ajiya described Gastech as an avenue for national oil firms to learn new technologies which will help the company 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.