Gastech 2024: NNPC seeks investors to revive Brass, Olokola LNG projects

Nigerian National Petroleum Corp. (NNPC) are in talks with investors to revitalize two LNG projects in the country.

The talks—part of the nation’s effort to maximize its natural gas resources—was disclosed by NNPC’s chief financial officer, Umar Ajiya, at the Gastech conference and exhibition in Houston Sept. 19, the company said on its official LinkedIn page.

The Brass and Olokola LNG (OK LNG) projects hold potential for job creation, power generation, revenue generation, and economic diversification, the company said, noting the multi-billion-dollar projects have been stalled due to unfavorable market conditions.

Brass LNG was a proposed LNG terminal in Bayelsa State, Nigeria, that was proposed to process 10 million tonnes/year of LNG in two separate trains but was subsequently cancelled. Nigeria's government has been looking to revive the project since 2022. In 2023, NNPC began talks to revive the OK LNG project, a proposed LNG terminal in Cross River State, Nigeria. The project was deemed mothballed after years without activity.

“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 said.

While specific investors or deals were mentioned, NNPC recognizes the need for “timely project development and execution” as 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.”

The company applauded President Bola Ahmed Tinubu for his support in driving new projects in oil and gas I through executive orders on oil and gas reforms and said the Petroleum Industry Act 2021 has “provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”