Ssonic Petroleum Ltd. has awarded a 20-year contract to a three way partnership (JV) of Nigeria Nationwide Petroleum Co. Ltd. for the provision of 80 million commonplace cubic ft a day of pure gasoline to Ssonic’s liquefied pure gasoline plant in Lagos’ Lekki Free Commerce Zone.
The provision will likely be delivered by the unincorporated JV of NNPC Fuel Advertising and marketing Ltd., a subsidiary of NNPC, and NIPCO Fuel Ltd., a subsidiary of Lagos-based downstream participant NIPCO PLC.
“The gasoline provide settlement is a part of efforts by the NNPC Ltd to spice up home gasoline utilization for industrial and financial development of the nation and promote using gasoline as a cleaner, cheaper and extra environmentally pleasant gasoline consistent with the objective of decreasing international warming”, NNPC stated in an internet assertion.
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On November 14, 2024, NNPC reported that Nigeria’s gasoline manufacturing ramped as much as 7.4 billion cubic ft per day.
NNPC has its personal liquefaction operations. Nigeria LNG, through which NNPC owns the bulk stake (49 p.c), produces as much as 22 million metric tons a yr of LNG and as much as 5 million metric tons a yr of pure gasoline liquids, in response to Nigeria LNG.
NNPC is increasing its gasoline infrastructure to develop its home and abroad attain within the sector. Nigeria’s 2020-30 “Decade of Fuel” initiative goals to make gasoline the highest gasoline within the West African nation’s financial improvement.
Earlier this yr development began on 5 mini-LNG services in Kogi state. NNPC holds stakes in three of the initiatives: 90 p.c in Prime LNG, 50 p.c in NGML/Gasnexus LNG and 10 p.c in BUA LNG. The opposite two vegetation are LNG Arete and Highland LNG.
“The Gasnexus/NGML 20MMSCFD [million standard cubic feet a day] small-scale LNG plant will likely be developed in phases, beginning with the event of a 7.5 MMSCF/D facility that can make the most of pure gasoline from the prevailing Oben-Ajaokuta pipeline to serve stranded clients within the North and different components of the area”, NNPC’s accomplice within the challenge, Axxela Ltd., stated in a press launch January 31, 2025.
Final yr NNPC signed a take care of one other native downstream agency to construct a gasoline distribution facility with a capability of 100 MMscfd in Kogi.
“The gasoline facility (city-gate) will allow pure gasoline provide to varied home LNG services, CNG [compressed natural gas] compression and different services requiring gasoline within the Ajaokuta space”, NNPC stated October 18, 2024.
NNPC concurrently inked one other settlement with the challenge accomplice, A4E Vitality, to produce the latter 5 MMscfd over 10 years. A4E Vitality, which in response to NNPC is a homegrown midstream and downstream gasoline and renewable vitality firm, will use this gasoline in its CNG facility and CNG dishing out stations.
In a milestone, native vitality engineering firm UTM Offshore Ltd. obtained approval from Nigeria’s authorities final yr for the nation’s first floating LNG plant. The challenge, which can exploit the offshore Yoho discipline, has a deliberate capability of two.8 million metric tons a yr, in response to UTM Offshore.
“The challenge represents a big step ahead in Nigeria’s vitality sector, enhancing the nation’s skill to harness its untapped 209 trillion cubic ft of pure gasoline for each export and home consumption”, UTM Offshore stated September 6, 2024.
Additionally in 2024 NNPC signed a challenge improvement settlement with Golar LNG Ltd. for the deployment of a floating LNG facility in Nigeria.
The take care of Bermuda-based Golar LNG “additionally outlines the monetization plan that can make the most of roughly 400-500mmscf/d and produce LNG, LPG [liquefied petroleum gas] and condensate”, NNPC stated June 11, 2024.
The FLNG will exploit “huge” confirmed gasoline reserves in shallow waters of the Niger Delta, NNPC stated. Manufacturing is deliberate to begin 2027.
To contact the creator, e mail jov.onsat@rigzone.com
