Nigerian Gas Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has signed a deal for the building of a small-scale liquefied natural gas plant in Ajaokuta, Kogi State.
According to a statement by Transit Gas, a subsidiary of Axxela Limited, the deal was signed in a partnership with Transit Gas Nigeria Limited.
The plant, which will have a capacity of 5 million standard cubic feet per day, is the first phase of a 20mmscfd development.
Speaking at the official contract signing ceremony, the Chief Executive Officer, Axxela, 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 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.”
According to the statement, 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.
It said with its strategic central location in Ajaokuta and proximity to the Northern market, the project would serve stranded industrial and commercial customers currently using diesel and similar fuels, helping to improve their competitive advantage.
The statement said it would 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.
The Group Managing Director, NNPC, Mallam Mele Kyari, represented by the Group Executive Director and Chief Financial Officer, NNPC, Mallam Umar Ajiya, said, “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.”
