NNPC Ltd. Set to Revive Brass and Olokola LNG Projects Amidst Efforts to Boost Nigeria’s Gas Economy

UGO AMADI, Houston ,Texas

In a strategic move to harness Nigeria’s abundant gas resources for economic growth, NNPC Ltd. has initiated discussions with investors to revitalize two key Liquefied Natural Gas (LNG) projects: Brass LNG and Olokola LNG.

The announcement was made by NNPC Ltd.’s Chief Financial Officer (CFO), Mr. Umar Ajiya, during the ongoing 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, Texas.

The projects, which have faced delays due to unfavorable market conditions and slow political decision-making, hold significant potential for job creation, power generation, and economic diversification.

He  highlighted that both LNG projects are poised to deliver manifold economic benefits for Nigeria. However, Ajiya pointed out that past fluctuations in gas prices and the high capital expenditure (CAPEX) required for these projects discouraged potential investors.

“The previous decline in gas prices and the associated high CAPEX created disincentives for investment. Additionally, the slow decision-making processes by the political class contributed to the stalling of these vital projects,” Ajiya stated.

Emphasizing NNPC Ltd.’s commitment to commercially driven initiatives, Ajiya noted the urgent need for Nigeria to make informed decisions to attract partners in the competitive global gas market. He commended President Bola Ahmed Tinubu for his support in advancing new projects in the sector through the Presidential Executive Orders on Oil & Gas Reforms.

“The implementation of the Petroleum Industry Act, 2021 (PIA) has provided essential fiscal incentives for investors, creating an enabling environment that has renewed optimism in the energy sector,” Ajiya added.

He further described Gastech as an invaluable platform for NNPC Ltd. to explore innovative technologies that can aid in decarbonizing operations while promoting Nigeria’s vast LNG resources to the international market. Gastech serves as a global forum focused on achieving sustainable energy solutions, uniting experts to develop pathways toward energy security and climate impact.

As Nigeria seeks to maximize its natural gas potential, the revival of the Brass and Olokola LNG projects represents a significant step toward enhancing the country’s economic landscape and positioning it as a competitive player in the global energy market. With the right partnerships and strategic decisions, NNPC Ltd. aims to unlock the full value of Nigeria’s gas resources, driving both local and international investments.