Nigeria Launches Ambitious $500m Mini-LNG Plants Project in Ajaokuta, Kogi State
NNPC Announces That Fuel Can No Longer Be Sold for 170 Naira
In a significant move to deepen gas utilization and accelerate economic growth, Nigeria has commenced the construction of five mini-Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State. The project, valued at $500 million, is expected to facilitate rapid access to gas, driving industrialization and economic development in the region.
Project Details
The mini-LNG plants are being developed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) in partnership with several companies, including PRIME LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete. The plants will be built on 33,000 hectares of land and will have a combined capacity of 97.5 million standard cubic feet of gas per day.
Nigeria begins work on five $500m mini-LNG plants in Ajaokuta, Kogi State pic.twitter.com/tdih3AnShm
— Africa Independent Television (@AIT_Online) January 30, 2025
Key Benefits
The mini-LNG plants project is expected to have a profound impact on the region, driving economic growth, creating jobs, and increasing gas penetration. Some of the key benefits of the project include:
- Increased Gas Penetration: The mini-LNG plants will provide a flexible solution to increase gas penetration in remote locations where pipeline infrastructure does not exist.
- Economic Growth: The project is expected to spur economic activities and revenue generation in Kogi State and beyond.
- Job Creation: The construction and operation of the plants will create employment opportunities for locals and support the development of the region.
- Environmental Benefits: The project will support the Federal Government’s flare-down initiative, reducing carbon emissions and promoting a cleaner environment.
Alignment with National Objectives
The mini-LNG plants project aligns with the Federal Government’s ‘Decade of Gas’ agenda, which aims to harness Nigeria’s abundant natural gas resources for economic development and reduced carbon footprint. The project also supports the government’s efforts to increase gas utilization, reduce flaring, and promote a cleaner environment.
Construction Timeline
The construction of the mini-LNG plants is expected to be completed within the next 24 months. The project will be executed in phases, with the first phase expected to be completed within the next 12 months.
The launch of the mini-LNG plants project in Ajaokuta, Kogi State, marks a significant milestone in Nigeria’s efforts to deepen gas utilization and drive economic growth. The project has the potential to transform the region, creating jobs, driving economic activities, and increasing gas penetration. As the project progresses, Nigerians will be watching with keen interest, eager to see the impact of this ambitious initiative.
