Ogun and NNPC reopen talks on long-delayed Olokola LNG project

Ogun State and the Nigerian National Petroleum Company Limited have reopened discussions on reviving the long-delayed Olokola Liquefied Natural Gas project in Ogun Waterside. The talks come after Ogun signed memoranda of understanding with DP World for a deep-sea port and a 10,000-hectare Blue Marine Special Economic Zone. The agreements are expected to attract more than $7bn in initial investment and create over 50,000 direct jobs, according to the source material.

Governor Dapo Abiodun said the LNG facility could become a major energy base for industries in the coastal corridor and help meet energy demand in Ogun and the wider South-West. He said the project had been on the drawing board for more than three decades. Abiodun said discussions with NNPC covered land acquisition, incentives and other requirements needed for implementation.

He pledged cooperation and guarantees from the state government and said the project could supply gas to industries, businesses and communities. The governor described the port, industrial zone and LNG facility as complementary components of an integrated ecosystem for energy, manufacturing, maritime trade and logistics. The planned port is to have a four-kilometre berth and an 18-metre draft.

NNPC Group Chief Finance Officer Adedapo Segun said the company was conducting a comprehensive review of the difficulties that had previously stalled the project. The aim, he said, was to identify lasting solutions and revive it. NNPC Executive Vice-President for Gas, Power and New Energy Lekan Ogunleye said the LNG development would require about 1,728 hectares for plants, storage and related infrastructure.

He added that it would need approximately 2.5 kilometres of Atlantic frontage and up to three LNG jetties.