Tag: NNPCL

In its efforts to further boost natural gas utilization in the country and enhance Nigeria’s gas revenue, NNPC Ltd has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market.

During two separate signing ceremonies held on the sidelines of the United Nation’s Climate Change Conference (also known as COP28), NNPC Ltd signed a MoU with Wison Heavy Industry Co. Ltd, a Chinese company, for the development of a floating LNG project in Nigeria, targeting the international LNG market.

 NNPCL chief communications officer, Olufemi Soneye disclosed this in a press statement on Wednesday, December 6.

The statement noted that also, NNPC Prime LNG Ltd, an arm of NNPC Trading Ltd, signed a Supply, Installation and Commissioning Agreement with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project targeting the domestic LNG market.

The Floating LNG MoU was signed by the Executive Vice President, Gas, Power & New Energy, Olalekan Ogunbayo on behalf of NNPC Ltd and Mr. Kai Xu, Managing Director of Wison Ltd, on behalf of his company.

Both parties agreed to work together to chart a roadmap for the project development that will lead to an investment decision.

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The Small-Scale LNG (SSLNG) Project agreement was signed by the Managing Director of NNPC Trading Ltd., Lawal Sade, on behalf of NNPC Prime LNG Ltd while Mr. Abhinav Modi, Managing Director of SDP Services Ltd, signed on behalf of his company.

The SSLNG Project, which will be located at Ajaokuta in Kogi State, Central Nigeria, will ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The LNG Project is expected to be operational by December 2024.

Speaking shortly after the signing ceremony, the EVP Gas, Power & New Energy, Mr. Olalekan Ogunleye said NNPC Ltd is committed to delivering gas to industries nationwide and accelerating the Company’s gas commercialization efforts through the floating LNG Project.

Ogunleye stated: “We see both projects have an enormous impact all over the country because they are central to the commercialization of Nigeria’s abundant gas resources and ensuring that our country earns the much-needed foreign revenue from its abundant gas assets. It is also consistent with NNPC Management’s drive to deliver on Mr. President’s gas and power aspirations across the country.”

Also, in his address after the signing, the MD NNPC Trading Ltd, Mr. Lawal Sade said the SSLNG Project will boost the domestication of LNG utilisation by supporting the growth of auto-gas initiatives across the country.

He said: “We are looking at a time frame of 12 months from execution to the commissioning of the project. The project will deliver about 420 tonnes per day of LNG per day into the domestic market, which will enhance efficient delivery of gas to the auto-gas/CNG and industrial customers in line with Presidential mandate.”

While expressing their delight at signing the agreements, the partners pledged to work with NNPC Ltd to deliver the projects within schedule and in the most cost-effective manner.

The Akwa Ibom state government has given its support for the construction of an onshore logistics base in Ibaka, Mbo local government area of the state.

The proposed project to be undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and Solutions Hub Limited is to be sited on the 40 kilometers space within the designated free trade zone in the state.

Read Also: Niger, NNPCL signs green economy development agreement

It is modeled to be an alternative to existing logistics bases in Nigeria to offer offshore construction support to West and Central African regions.

Governor Umo Eno during a meeting with the management of NNPCL and Solutions Hub Limited at the Government House, Uyo, assured that government will expedite action to ensure the speedy and smooth commencement of the project.

The Nigerian National Petroleum Company Limited (NNPCL) has provided insight into how the lingering Russia – Ukraine war impacted Nigerian crude oil inflows in the international oil market.

The NNPC Ltd said this led to a dip in demand from the once-dependable Asian market at the onset of hostilities in the Eastern bloc.

Maryamu Idris, Executive Director, Crude and Condensate, NNPC Trading Limited made this known in a panel presentation at the Argus European Crude Conference in London.

Idris, in a statement on Thursday by Mr Femi Soneye, Chief Corporate Communications Officer, NNPC Ltd, said Nigeria’s crude export to India dwindled.

According to Idris, in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels.

This, she said was to the detriment of some Nigerian volumes.

“To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterwards.

“And so far, this year, only around 120,000 bpd of Nigerian crude volumes have made their way to India,” she said.

On the other hand, she said Nigerian crude flow to Europe had increased in a bid to fill supply gaps left by the ban on Russian crude.

She explained that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710,000 bpd six months later and 730,000 bpd so far this year.

“This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners.

“Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel.

“Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket.

“This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade,” Idris said.

Idris said Nigeria faced production challenges aggravated by COVID-19 pandemic, including reduced investment, supply chain disruptions, ageing oil fields and oil theft, contributing to production declines in the second half of 2022 and early 2023.

She, however, said that the challenges were fast becoming a thing of the past with the implementation of a new framework for the domestic petroleum industry (PIA 2021), rejuvenating business landscape and repositioning NNPCL for a more commercial approach.

According to her, NNPC Limited has secured vital partnerships with notable financial institutions to promote upstream investments to restore and sustainably grow production capacity in the coming years.

“NNPC Limited is championing concerted efforts in partnership with host communities and private stakeholders to address the security and environmental challenges in the Niger Delta to further fortify production growth.

Read Also: Niger, NNPCL signs green economy development agreement

“We have already begun seeing significant progress on the rebound. In September 2023, Nigeria recorded its highest crude oil and condensate output in nearly two years, reaching 1.72 million barrels per day.

This, we believe, is just the beginning of our production rebound.

She affirmed that NNPCL was also increasing its participation in the downstream sector in line with a ‘wells-to-wheels’ approach, taking the country’s unique hydrocarbon molecules as close as possible to end-users.

The vehicle for this, she said, is the restructured NNPC Trading Company, focused on growing NNPC’s presence in the global market for crude, condensate, gas, and petroleum products.

The Argus Crude European Crude Conference Panel Session was held with the theme: ‘The Invisible Hand: How Are Shareholders and Asset Managers Meeting the Crude Industry? What Does This Mean for the Future of Crude in Europe?’’.

(NAN)

The Niger state government has signed green economy initiative agreement with the Nigeria National Petroluem Company Limited (NEPAL) that would attracted international investors to the state. 

The agreement which is the first of its kind in the country will lead to Green Economy and Energy Development Partnership agreement for the development of four unique projects in the state. 

Under the agreement, the NNPC Limited is to develop a Greenfield Hydroelectric power project as well as a Mega Solar parks in institutions across the state as well as home solar system for 250,000 households across the state. 

They are also to develop a 500 million liters Ethanol Plant with associated cropping of Maize /Sugarcane/Sweet Sorghum on 100,000 hectares of land in Niger state to produce over 500,000 tons of crops to feed the ethanol plant. 

Read Also: NDDC to oil firms: protect Niger Delta from gas flaring, pollution

In addition, the NNPC Limited plans to plant 135 million trees on 100,000 hectares of land as part of its commitment to climate protection and carbon sequestration towards its 2030 net zero targets.

The state governor, Mohammed Umar Bago who disclosed this in Abuja reinstated his commitment to planting 1 billion trees on a 1 million hectares of land over the next 8 years. 

He disclosed that this plan has already gotten the commitment of NNPC which is the largest oil and Gas company in Africa. 

He said the state hopes to Partner with other global oil and Gas, Shipping, Airlines, Cement companies, and the United Nations  and its agencies in achieving the one billion trees target.