Construction of Small-Scale LNG in Ajaokuta

Source: www.gulfoilandgas.com 12/2/2021, Location: Africa

Nigerian Gas Marketing Company (NGMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), in partnership with Transit Gas Nigeria Limited (“Transit Gas”), a subsidiary of Axxela Limited (“Axxela”) recently signed the Engineering, Procurement, Construction and Commissioning (EPCC) contract for the building of a 5MMSCFD small-scale liquefied natural gas plant in Ajaokuta, Kogi State, which is the first phase of a 20MMSCFD development.

Speaking at the official contract signing ceremony, Chief Executive Officer, Axxela, Mr. Bolaji Osunsanya said, “This official contract signing ceremony is a major landmark for us. We are happy to cross this critical milestone on this multifaceted virtual pipeline development. With the recent declaration of the “Decade of Gas” by the Federal Government of Nigeria, we believe that collaborations of this nature are important to actualise the government’s aspiration. With all hands on deck, the project is on the right footing for timely completion to unlock value for stakeholders and Nigeria as a nation”.

The gas liquefaction project is in line with Axxela’s mission to deliver innovative solutions that create sustainable and efficient energy utilisation for the benefit of all stakeholders. With its strategic central location in Ajaokuta and proximity to the Northern market, the project will serve stranded industrial and commercial customers who are currently using diesel and similar fuels, helping to improve their competitive advantage. It will also serve as a catalyst to further drive industrialisation and open up areas without gas pipeline infrastructure to a cheaper, cleaner and more environmentally friendly fuel.

Group Executive Director & Chief Financial Officer, NNPC, Mallam Umar Isa Ajiya, representing the Group Managing Director of NNPC, Mallam Mele Kyari, stated “For us as a government, natural gas remains a transition fuel for Nigeria, hence any project that seeks to further this agenda is a welcome development. This is a very significant project that will help reduce the challenges of using gas up-country. The successful completion of the project will give further credence to the gas utilisation programme of the government given Nigeria’s abundant natural gas resources”.

The mini-LNG project is a joint venture between NGMC, the gas marketing subsidiary of NNPC with decades of gas distribution and marketing experience as the largest domestic gas company in Nigeria and Transit Gas, a subsidiary of Axxela, and the operator of the joint venture, with extensive experience in gas infrastructure development and distribution. This combined pedigree will enable the successful execution of the project, safely and efficiently, while keeping to global best practices.


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