The Nigerian National Petroleum Company (NNPC) Limited says it has commenced discussions with investors towards reviving Brass and Olokola liquefied natural gas (LNG) projects.
In a statement on Friday by Oluwafemi Soneye, NNPC’s spokesperson, the national oil company said the revival plan is part of ongoing efforts to maximise the nation’s abundant gas resources for economic development and prosperity.
“Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country which include job creation, power generation, revenue generation and economic diversification,” NNPC said.
“The multi-billion-dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.”
Speaking on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, Umar Ajiya, NNPC’s chief financial officer (CFO), said in the past, gas prices dropped, and the economics of the projects translated to a high capital expenditure (CAPEX).
Ajiya said it was a disincentive for investors and partners.
“Also, there was slow decision-making by the political class,” the CFO said.
Describing NNPC as a commercially driven company that values prompt project development and execution, Ajiya said there are abundant gas resources in many parts of the world.
Therefore, he said the earlier Nigeria makes smart decisions to bring partners to the table, the better.
Ajiya commended President Bola Tinubu for his support in driving new initiatives in the sector through the presidential executive orders on oil and gas reforms.
“We are also happy to have the Petroleum Industry Act, 2021 (PIA) which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector,” he said.
Ajiya described Gastech as an avenue for NNPC to learn new technologies to help the company decarbonise its operations and showcase its abundant LNG resources to the international market
