- Safiu Kehinde
Nigeria National Petroleum Company Limited (NNPCL) has made move towards reviving two Liquefied Natural Gas (LNG) Projects.
This was disclosed in a statement issued by company’s spokesperson, Olufemi Soneye.
According to the statement, NNPCL has begun discussions with investors towards bringing back the Brass and Olokola LNG Projects.
This was disclosed by the Company’s Chief Financial Officer, Umar Ajiya, at the ongoing 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States.
Ajiya noted that the LNG Projects were initially suspended due to unfavorable market dynamics and slow decision-making by the political class in the past.
He highlighted the economic benefits that the projects possess which include job creation, power generation, revenue generation, and economic diversification.
“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,”’ the CFO said.
While describing NNPC Ltd as a commercially driven Company which recognises timely project development and execution, the CFO 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.
Ajiya commended President Bola Ahmed 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 (PIA) has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.” He added.