A joint venture comprising of Nigerian National Petroleum Corporation (NNPC) and Total Exploration and Production Nigeria Limited (TEPNG), has signed an agreement with the Gas Aggregation Company of Nigeria (GACN) and Greenville Oil and Gas for the construction of the country's first mini LNG project.
The agreement was signed before the minister of state for petroleum resources, Dr. Ibe Kachikwu, NNPC senior official, Sam Ndukwe, managing director of TEPNG, Nicolas Terraz and Chairman of Greenville, Eddy Van Den Broeke, THISDAY reported.
Broeke said the mini LNG plant would be developed in phases, with the first phase costing $500 million of equity investment, while the second phase would take another $350 million.
Mini LNG plant in Africa
Broeke said: “We have just decided to invest in the first three mini LNG plants in Africa, but the big challenge today is that no bank is available to finance this investment because of the temporary problems that Nigeria is going through.
“We have taken the bold step in saying this country will come back in the next two or three years with the revolution that is going in the country and development of more agriculture.”
Also speaking at the event, minister Kachikwu said the agreement will unlock unbelievable opportunities, media stated.
He added: "Our first step was to set up the Nigerian Gas Management Company and Nigerian Gas Pipeline Transportation Company. I am happy that a few months after we launched the gas policy we are seeing this happen. We want to ensure that the payment issues are dealt with and made on time so there is a good financing for the project."
The minister urged other investors to invest in the gas sector, saying: "We will see what we can do to move this [country] fairly fast from oil-focused to gas-focused zone." Read more...
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