During two separate signing ceremonies held on the sidelines of the on-going United Nation’s Climate Change Conference (also known as COP28), NNPC Ltd signed an MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of floating LNG project in Nigeria, targeting the international LNG market.

Also, NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd, signed a Supply, Installation and Commissioning Agreement with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project targeting the domestic LNG market.

The Floating LNG MoU was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunbayo on behalf of NNPC Ltd and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company. Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

Similarly, the Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director, NNPC Trading Ltd., Mr. Lawal Sade, on behalf of NNPC Prime LNG Ltd while Mr. Abhinav Modi, Managing Director of SDP Services Ltd, signed on behalf of his company.

The SSLNG Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, will ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye said NNPC Ltd is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialization efforts through the floating LNG Project.

“We see both projects as having enormous impact all over the country because they are central to the commercialization of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets. It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country,” Ogunleye stated.

Also, in his address after the signing, the MD NNPC Trading Ltd, Mr. Lawal Sade said the SSLNG Project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

“We are looking at a time-frame of 12 months from execution to the commissioning of the project. The project will deliver about 420 tonnes per day of LNG per day into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate,” Sade added.

While expressing their delight at signing the agreements, the partners pledged to work with NNPC Ltd to deliver the projects within schedule and in the most cost-effective manner.

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Recall that Global Steel entered the Nigerian steel industry in 2004 following five major concessions and share purchase agreements by the Olusegun Obasanjo administration.

However, when the late President Umaru Musa Yar’Adua’s new administration took office, things turned bad.

Because the firm was engaged in asset stripping, the government canceled Global Steel’s 10-year concession of Ajaokuta steel in June 2008.

Abubakar Malami, the Minister of Justice and Attorney General of the Federation, reportedly stated in September that they would settle the bill.

He said instead of paying the original claim of $5.258 billion by GSHL over the termination of the concessions by the Olusegun Obasanjo administration, Nigeria was able to secure a 91 percent reduction and will now pay $496 million only.

With this development, the Minister of justice said, President Muhammadu Buhari has now “rescued” the steel industry from interminable and complex disputes as well as saving the taxpayer from humongous damages.

After a protracted disagreement, the Federal Government and Global Steel Holdings Limited renegotiated the concession agreement for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe.

The agreement was reached after lengthy negotiations, and although there had been expectations that Nigeria would start making steel, those dreams were never realized.

Since 2008, there have been protracted negotiations to find a peaceful solution to the Ajaokuta conflict, paralyzing the nation’s steel and industrial sectors.

But the news medium quoted Malami, who it said led the negotiations, as having said that the government had managed to get a 91 percent cut on the original claims of $5.258 billion.

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