The Nigeria National Petroleum Company Limited (NNPCL) has said it is set to revive Brass and Olokola Liquefied and Natural Gas projects.
NNPCL said discussions with investors towards bringing back two Liquefied Natural Gas (LNG), Brass and Olokola LNG projects, have begun so as to maximize the nation’s abundant gas resources for economic development and prosperity.
NNPCL’s Chief Financial Officer (CFO), Mr. Umar Ajiya disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday.
“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.
“In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX), and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class,” Ajiya said.
While describing NNPC as a commercially driven Company that recognizes timely project development and execution, Ajiya explained 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“.
NNPCL’s Chief Finance Officer commended 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 stated.
Ajiya described Gastech as an avenue for NNPC to learn new technologies which will help the Company decarbonize its operations and promote its abundant LNG resources to the global market.
According to NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, in a statement on Friday, “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.“