NNPCL’s Natural Gas Initiatives
New Gas Distribution Facility
The Nigeria National Petroleum Company Limited (NNPCL) is collaborating with a local downstream partner to build a natural gas distribution facility in Kogi State. This facility will have a capacity of 100 million cubic feet per day (MMcfd). It will supply gas to domestic LNG facilities and CNG compression units in the Ajaokuta area.
Agreement with A4E Energy
NNPC Gas Marketing Ltd. (NGML) has signed an agreement with A4E Energy to supply five MMcfd for ten years. A4E Energy is a homegrown midstream and downstream gas and renewable energy company. They will use this gas at their CNG facility and dispensing stations.
Expansion of Gas Infrastructure
NNPCL is expanding its gas infrastructure to enhance domestic and international capabilities. The Decade of Gas initiative (2020–2030) aims to make gas the principal fuel for Nigeria’s economic growth.
Floating LNG Plant Project
In late 2023, NNPCL partnered with UTM Offshore Ltd. and the Delta government to construct West Africa’s first floating LNG plant. This project will exploit the offshore Yoho field and achieve a capacity of 176 MMcfd.
Agreement with Golar LNG
NNPCL has also signed a project development agreement with Golar LNG Ltd. for a Floating LNG (FLNG) facility in Nigeria. The deal outlines a monetization plan to use 400-500 million standard cubic feet per day (mmscf/d) to produce LNG, LPG, and condensate. Production is targeted to start in 2027 after a final investment decision in the fourth quarter.
Potential LNG Exports to South Korea
NNPC is in discussions with a South Korean consortium regarding potential LNG exports to South Korea. The collaboration aims to attract foreign direct investment aligned with President Bola Ahmed Tinubu’s strategy to position Nigeria as an investor-friendly country.
Domestic LNG and CNG Plans
NNPCL plans to build three LNG fueling stations and establish over 100 CNG stations by next year. Managing director Huub Stokman emphasized that CNG will be about 40 percent cheaper than petrol in Nigeria.
Natural Gas Production Statistics
According to the Energy Institute’s 2024 Statistical Review, Nigeria’s natural gas production grew 0.3 percent annually leading up to 2022, with a production of 40.4 billion cubic meters (1.4 trillion cubic feet). As of early 2024, associated and non-associated gas reserves stood at 209.3 trillion cubic feet, according to the Nigerian Upstream Petroleum Regulatory Commission.
