Nigeria’s state-owned oil giant, NNPC Ltd, is advancing efforts to resurrect the stalled Brass and Olokola Liquefied Natural Gas (LNG) projects as part of its broader strategy to maximize the country’s vast gas resources.
The company has initiated talks with investors to breathe new life into the projects, NNPC’s Chief Financial Officer Umar Ajiya revealed on Thursday at the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston.
The Brass and OK LNG projects, once envisioned as multi-billion-dollar initiatives with the potential to generate jobs, boost power supply, and diversify Nigeria’s economy, were delayed by market challenges and slow political decision-making.
“In the past, lower gas prices and high capital expenditure were deterrents for investors, coupled with the slow decision-making from the political class,” Ajiya explained.
Economic Potential and Government Support
The revival of these projects comes as NNPC Ltd positions itself as a commercially driven entity, emphasizing the importance of quick project execution to stay competitive in a global market rich with gas resources.
“There are abundant gas resources worldwide. The sooner Nigeria makes decisive moves to bring in partners, the better,” Ajiya added.
NNPC’s renewed push is bolstered by recent reforms under President Bola Ahmed Tinubu, who has introduced Presidential Executive Orders aimed at accelerating the development of new oil and gas projects.
Additionally, the Petroleum Industry Act (PIA) provides fiscal incentives and a more favourable regulatory environment, which has reignited investor confidence in Nigeria’s energy sector.
Pathway to Global LNG Market and Decarbonization
Ajiya highlighted that Gastech, the world’s premier forum for sustainable energy, offers a platform for NNPC Ltd to adopt new technologies that will help the company decarbonize its operations while promoting its LNG resources on the global stage.
“Gastech allows us to learn and explore pathways to energy security, helping Nigeria contribute meaningfully to the global LNG market,” he noted.
With government backing and a more investor-friendly landscape, NNPC Ltd’s renewed focus on LNG projects is seen as a key step toward unlocking Nigeria’s economic potential through its gas reserves, further positioning the nation as a major player in the global energy transition.
(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
