A joint venture between Nigeria’s National Petroleum Corp. (NNPC) and Total Exploration and Production Nigeria (TEPNG) has signed an agreement to build Nigeria’s first “mini LNG” plant with Greenville Oil and Gas and the Gas Aggregation Company of Nigeria (GACN). A ceremony on the deal was witnessed by Nigerian Minister of State for Petroleum Resources Ibe Kachikwu in Abuja.
The plan covers gas extracted from Rivers State’s Oil Mining Licence (OML) 58, on the northern edge of the Niger Delta. The plant, which will cost around US$500 million for its first stage of construction and US$350 million for the second, is planned to have a capacity 2.1 mcm per day.
The gas will be shipped to Greenville’s gas plant in Rumuji, on the outskirts of Port Harcourt, for liquefaction. The gas will then be distributed to end users across Nigeria.
While Nigeria is moving to secure gas pipelines that might provide it with export capacity, the future destination of the gas produced by this plant is likely to be domestic. Nigeria’s north has had serious power supply problems for the past few years, and while pipeline infrastructure is lacking, the partners hope to begin shipping LNG from this new plant and others to support industry, power generation and transport in the region.
Commenting on the project, GACN’s managing director, Morgan Okwoche, said this would be achieved using “virtual pipelines” of trucks and ships to move the gas. “Additionally, areas that are not easily accessible by the traditional pipelines, can now be reached through virtual pipelines for embedded power generation, which will further aid government’s resolve to ensure an efficient energy mix in the nation’s power sector.”
The project should also boost the use of CNG as a vehicle fuel, he said. “Similarly, LNG fuelling stations for LNG trucks will spring up, giving rise to a combined [CNG and LNG] stations to be built along the Nigerian highways, to ensure trucks can re-fuel when required,” he continued.