NNPC and Ogun State open talks to revive Olokola LNG project

Ogun State and the Nigerian National Petroleum Company Limited (NNPC) have begun talks to revive the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside. The proposed LNG facility had been on the drawing board for more than three decades.

Governor Dapo Abiodun said the facility could provide a major energy base for industries in the emerging coastal economic corridor. He said it could also help meet the energy needs of the wider South-West, and could supply gas to industries, businesses and communities across Ogun and the wider South-West.

Discussions with NNPC focused on land acquisition, incentives and other requirements needed to start the project. The state government committed to provide the necessary cooperation and guarantees. Abiodun said the developers would pay for land in the Economic Zone.

NNPC Group Chief Financial Officer Adedapo Segun said the company is conducting a comprehensive review of the challenges that previously hindered the project, aiming to find lasting solutions. He said NNPC plans to site the project alongside the state's coastline. The project would also require about 2.5 kilometres of dedicated Atlantic frontage to support marine traffic and safety requirements for up to three LNG jetties.

The talks follow a Memorandum of Understanding the state government signed with ports and logistics operator DP World for the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone. The agreements with DP World, signed in Paris in the presence of President Bola Ahmed Tinubu, are anticipated to attract over USD 7 billion in initial investment. They are also expected to create more than 50,000 direct jobs.