NNPC to Launch Three Mini-LNG Projects in Major Push for Cleaner Energy

The Nigerian National Petroleum Company Limited (NNPC) announced on Thursday its plans to commence three mini-Liquefied Natural Gas (LNG) projects this August. This significant step forms part of the company’s broader strategy to enhance rural road infrastructure and agricultural marketing across Nigeria.

The announcement was made by NNPC’s Group Chief Executive Officer, Mele Kyari, at the inaugural Africa Gas Innovation Summit 2024 in Abuja. The summit, organised by the Society of Petroleum Engineers, was themed “Igniting the Future: Driving Sustainability in Africa’s Energy Landscape through Gas Technology and Innovation.”

Represented by Olalekan Ogunkeye, NNPC’s Executive Vice President for Gas, Power, and New Energy, Kyari highlighted the company’s commitment to boosting Nigeria’s gas sector. He revealed plans to take a Final Investment Decision (FID) this year for the rollout of six additional Compressed Natural Gas (CNG) mother stations. The company is also upgrading numerous CNG refuelling stations nationwide.

Both LNG and CNG are cleaner-burning alternatives to traditional fuels like petrol and diesel. While LNG is predominantly used in power plants and industrial processes, CNG serves primarily as a transportation fuel and for power generation.

“In order to accelerate gas commercialisation, bearing in mind that this is the era of gas, NNPC has signed MoUs and project development agreements for floating LNG projects which will be the first in Nigeria, while currently executing a 30mmscuf/d small-scale mini-LNG project,” Kyari stated.

“Indeed, we are currently participating in three mini-LNG projects slated for ground-breaking this August. NNPC is also leading the Federal Government’s autogas initiative. Aside from the recent inauguration of the 5.2mmscuf/d Ilasamaja mother station CNG plant, we plan to take FID within this year and roll out additional six CNG mother station plants with similar capacity. Scores of CNG refilling stations are being renovated and upgraded to provide access to cleaner and cheaper fuel across the country,” he added.

NNPC is also spearheading the development of several gas-based industries in strategic industrial hubs across the nation. These initiatives are part of the Federal Government’s Decade of Gas programme, aimed at harnessing Nigeria’s abundant natural gas resources to drive economic growth and improve living standards.

Kyari noted that despite contributing the lowest volume of emissions globally, sub-Saharan Africa remains energy deficient. He emphasised Nigeria’s potential to overcome these challenges with its vast natural gas reserves of over 209 trillion cubic feet.

“Nigeria can address these challenges by providing access to electricity, clean cooking fuel, autogas, and feedstock for other industries, thereby generating wealth and improving our wellbeing. From an NNPC standpoint, this summit’s theme and topics clearly resonate, and NNPC is at the forefront of orchestrating a sustainable energy future for itself and Africa leveraging gas technology and innovation,” he asserted.

Highlighting ongoing projects, Kyari mentioned several key gas infrastructure initiatives, including the second phase of the AHL gas processing plant, the 300mmscuf/d ANOH gas processing plant, and the ANOH gas pipeline project, all recently inaugurated by Nigeria’s President.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, represented by Permanent Secretary Nicholas Ella, echoed the importance of leveraging Africa’s natural gas resources to meet energy needs and drive sustainable development. “We must invest in cutting-edge research, promote the deployment of advanced gas technologies, and encourage the adoption of best practices across the industry,” Ekpo said.

The summit underscored the transformative potential of technological innovation in the gas sector, from exploration and production to transportation and utilisation. Innovations in LNG, CNG for vehicles, gas-to-power solutions, and carbon capture and storage are reshaping the energy landscape, setting the stage for a more sustainable future.