The Nigeria Government, recently, signed an agreement with National Petroleum Corporation, Total Exploration and Production Nigeria Joint Venture and Greenville Energy for a mini-Liquefied Natural Gas plant.

The agreement would see the construction of the plant in Rumuoji, Rivers State, with an investment outlay of $500 million.

Speaking during the signing of the Gas Sale and Aggregation Agreement in Abuja, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, said the agreement would allow the movement of gas across the country.

He also stated that with the absence of adequate pipeline network in some areas of the country, the agreement would help in transporting gas to critical industries.

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He further stated that the agreement would unlock existing opportunities in terms of gas supply to power companies, adding that the initial capacity of the mini-LNG project is 2,200 metric tonnes and has the capacity to grow to about 5,000 metric tonnes.

He said the Federal Government would address the challenges of payments and would ensure that payments are made on time for gas supplied under this arrangement.

He said the Federal Government is looking at increasing gas supply to the northern part of Nigeria, where a number of industries are closing shop because of the absence of electricity.

Speaking in the same vein, Group Managing Director of the NNPC, Mr. Maikanti Baru, said the agreement would allow it increase its gas output to 1.6 billion standard cubic feet (BCF) and also boost gas supply for domestic consumption and power supply.

Baru, who was represented by the Managing Director, Gas, and Power Investment Company, Mr. Sam Ndukwe, said Total would provide the gas feedstock, while the NNPC would create the enabling environment for the project to succeed by building more pipeline and increase access to gas supply.

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He also added that the agreement is in line with its plans to increase its power generation target from one gigawatt to six gigawatts.

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