NNPCL to revive Brass, OK LNG projects to bolster economy

Abdullateef Fowewe

Nigerian National Petroleum Company Limited has begun discussions with investors towards bringing back two Liquefied Natural Gas (LNG) projects, Brass and Olokola LNG projects.

According to a remark signed on Friday in Abuja by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye, the essence is in the company’s bid to maximise the nation’s abundant gas resources for economic development and prosperity.

Soneye said NNPCL’s Chief Financial Officer, Umar Ajiya announced the development on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition in Houston, United States on Thursday.

He noted that 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. The multi-billion-dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.

Ajiya was quoted saying, “In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX), and this was a disincentive for investors and partners. Also, there was slow decision-making by the political class.”

Ajiya further stressed that there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.

However, he applauded President Bola Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil & 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 added.

Ajiya characterised Gastech as an avenue for NNPCL to learn new technologies which will help the Company decarbonise its operations and promote its abundant LNG resources to the global market.

“Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact,” the remark expressed.