NNPC Meet Investors in America for Brass, Olokola LNG Projects

By Modupe Gbadeyanka

The Nigerian National Petroleum Company (NNPC) Limited has met with some investors in the United States to revive two Liquefied Natural Gas (LNG) projects in the country.

The projects include the Brass LNG and the Olokola LNG. The NNPC said it has begun talks on the LNG projects in its continued bid to maximise the nation’s abundant gas resources for economic development and prosperity.

“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,” the Chief Financial Officer (CFO) of the energy firm, Mr Umar Ajiya, said on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday.

Mr Ajiya said 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.

He praised 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,” the CFO said, describing Gastech as an avenue for NNPC Ltd. 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.

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.