NNPC and Partners to Construct Five Mini-LNG Plants to Boost Domestic Gas Supply
NNPC and Partners to Construct Five Mini-LNG Plants to Boost Domestic Gas Supply

NNPC and Partners to Construct Five Mini-LNG Plants to Boost Domestic Gas Supply

  • 03-Feb-2025 9:30 PM
  • Journalist: Shiba Teramoto

The Nigerian National Petroleum Corporation (NNPC) has embarked on the construction of five mini-liquefied natural gas (LNG) plants as part of a broader government initiative aimed at stimulating economic growth and increasing domestic gas usage. According to several media reports, Nigeria, Africa's largest energy producer, boasts the continent's largest gas reserves, estimated to exceed 200 trillion cubic feet. The government is working to tap into these reserves to enhance gas supplies to industries and power plants, while also focusing on exports and a commitment to eliminate routine flaring by 2030.

The new mini-LNG plants, which will have a combined capacity of 97 million standard cubic feet per day, are designed to increase domestic gas access and support off-grid industries, which lack infrastructure such as pipelines. These plants are also expected to help reduce carbon emissions by promoting the use of cleaner energy sources. The plants will be located in Ajaokuta, central Nigeria, where NNPC holds stakes in three of the facilities, in collaboration with Gasnexus and BUA Group Ltd. In addition, private firms Highland LNG and LNG Arete will develop the remaining two plants.

According to media reports, NNPC's chief executive, Mele Kyari, emphasized the importance of the mini-LNG plants for areas currently without gas pipeline infrastructure. He noted that the plants would enable efficient gas transportation over long distances, benefiting households, industries, and businesses in regions where access to natural gas has been limited.

The establishment of these mini-LNG plants comes at a time when Nigeria is increasingly focusing on gas as a critical driver for economic growth. With oil revenues declining, the country is turning to its vast natural gas resources to help power the economy and diversify revenue streams. In recent years, Nigeria has prioritized gas development, and these mini-LNG plants will be integral to this strategy. The government hopes that they will contribute to the stability of the national power grid and help position Nigeria as a major exporter of natural gas.

The plants will play a significant role in Nigeria’s broader energy strategy. By helping to transport and distribute gas more efficiently, the project will support key sectors, such as manufacturing, agriculture, and power generation, with a stable and cleaner energy source. These plants will not only promote economic growth but will also address energy access challenges in rural and underserved areas, thereby supporting industrial growth and job creation.

The media reports highlight that the mini-LNG plants are part of Nigeria’s transition towards using more of its natural gas resources for domestic purposes, marking a shift in energy policy. As the country continues to invest in energy infrastructure, these plants will contribute to a more sustainable, secure, and cleaner energy future. The projects reflect the government's determination to boost gas usage for economic development and reduce environmental impact while strengthening Nigeria's position in the regional and global gas markets.

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