EPCC Contract for Construction of Small Scale LNG Plant in Ajaokuta, Nigeria

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The Nigerian Gas Marketing Company (NGMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), in partnership with Transit Gas Nigeria Limited, a subsidiary of Axxela Limited have recently signed an Engineering, Procurement, Construction and Commissioning (EPCC) contract for the construction of a small-scale (Liquefied Natural Gas) LNG Plant in Ajaokuta, Kogi State, Middle Belt region of Nigeria.

The facility will initially have the capacity to process 5 million cubic feet of gas per day that will eventually be increased to 20 million cubic feet per day.

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Major landmark and milestone, and step towards the project completion and actualization of government’s aspiration

Speaking at the official contract signing ceremony, Bolaji Osunsanya, the CEO of Axxela said that this official contract signing ceremony is a major landmark for his company and a critical milestone on this multifaceted virtual pipeline development, adding that with the recent declaration of the “Decade of Gas” by the Federal Government of Nigeria, collaborations of this nature are important to actualize the government’s aspiration.

“With all hands on deck, the project is on the right footing for timely completion to unlock value for stakeholders and Nigeria as a nation,” affirmed the CEO.

Expectations for the LNG Plant in Ajaokuta

Upon completion, the LNG Plant in Ajaokuta will serve stranded industrial and commercial customers who are currently using diesel and similar fuels, and in that case, help improve their competitive advantage, owing to its strategic central location in Ajaokuta and proximity to the Northern market.

It will also serve as a catalyst for further industrialization, and provide access to a cheaper, cleaner, and more environmentally friendly fuel in areas where there is no gas pipeline infrastructure.

According to Mallam Umar Isa Ajiya, NNPC’s chief financial officer the successful completion of the project will also give more credibility to the government’s gas program, given Nigeria’s abundant natural gas resources.