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NNPC said the groundbreaking ceremony for the mini LNG plants will be held in Ajaokuta, Kogi state, on January 30.
The five small-scale liquefaction, storage, and distribution projects are Prime LNG, NGML/Gasnexus LNG, Bua LNG, Highland LNG, and LNG Arete.
NNPC said these five strategically located plants will deliver “affordable” energy to businesses and industries across Nigeria.
The projects will drive industrial growth, attract investments, and create thousands of direct and indirect jobs, the firm claims.
NNPC did not reveal further information int the announcement, but it provided further details to local media.
According to the reports, NNPC Prime LNG is jointly owned by NNPC Trading (90 percent) and Silver Peaks (10 percent), while the NNPC Gas Marketing (NGML)/Gasnexus LNG project involves the phased construction of a 20 mmscfd LNG plant with the first phase including the construction of 7.5 mmscfd plant.
Natural gas will be supplied via the existing Oben-Ajaokuta pipeline. The supplies will be liquefied, transported via trucks, and regasified at each customer location for use.
Moreover, the Bua LNG project, a joint venture between NGML and BUA Industries, includes the construction of a plant with a capacity of 700 tons per day, and these supplies will be transported and regasified at BUA’s Sokoto cement plant.
Highland LNG will provide natural gas to industrial and commercial customers not connected to Nigeria’s pipeline network and support off-grid power generation, while LNG Arete, a Nigerian firm, aims to provide LNG as an alternative energy source.
NNPC’s LNG business
NNPC has a 49 percent stake in Nigeria LNG, the operator of the six-train 22 mtpa facility on Bonny Island.
Besides NNPC, other partners are Shell (25.6 percent), TotalEnergies (15 percent), and Eni (10.4 percent).
Nigeria LNG is also adding the seventh production unit at the Bonny Island plant.
The NLNG Train 7 project consists of the construction of one complete LNG train and one additional liquefaction unit. The project also includes other associated utilities and infrastructures.
The new unit will add around 8 mtpa of capacity to the Bonny Island facility for a total of about 30 mtpa.
Last year, NNPC said it was also in talks with investors to revive two LNG export projects, Brass and Olokola.
In addition to onshore projects, NNPC is also working on FLNG projects.
NNPC and Golar LNG are working on a floating LNG project offshore Nigeria’s Niger Delta, while NNPC also has a 20 percent stake in UTM Offshore, which is developing Nigeria’s first FLNG project.