Olokola LNG: NNPC allays fears over Chevron, Shell exit

Andrew-Yakubu-NNPC-GMD02 September 2013, Abuja – The sudden withdrawal of Shell and Chevron from the Olokola Liquefied Natural Gas, LNG, project would not affect the dream of driving Nigeria’s industrial growth through gas revolution, the Nigerian National Petroleum Corporation, NNPC, has said.

There was apprehension within the industry that an ambitious gas master plan, which was launched by President Goodluck Jonathan, may head for the rocks as a result of the pullout of the two multinational giants.

But a statement from the Group General Manager, Group Public Affairs Division of the NNPC, Tumini Green, issued in Abuja at the weekend, said contrary to the widely held opinion, the dream of gas-induced industrial growth is progressing.

Green argued that this evident in the significant gas supply for power generation and industrial usage.

Her words: “The Gas Revolution Agenda which is an integral part of the Gas Master plan cannot be derailed just like that. NNPC can confirm that the exit of Shell and Chevron will not impact on Mr. President’s Gas Revolution Agenda. In fact, very good progress is being made with domestic gas supply which has reached the highest level of 1500mmcf/d from about 500mmcf/d about three years ago.”

Green noted that over 70 per cent of the generated gas is directed to the power sector as part of the gas revolution agenda.

She explained that the gas-based industrialisation agenda of the President planned for Ogidigben in Delta State has indeed taken off with site data gathering activities noting that major new heavy gas based industries such as fertilizer, petrochemicals and others would come on board to create the much needed jobs.

“All these are very much under way and unaffected by the recent exit of Shell and Chevron from OKLNG. Similarly the Brass LNG project is unaffected by this exit as shareholders of the Brass LNG are different,” she stated.

She further noted that in line with the transformation agenda of the Federal Government, the NNPC is determined to continue to work with partners and stakeholders to ensure that Nigeria continues to be the desired location for gas based investments.

“In a changing global gas market, OKLNG inevitably has suffered a setback as a result of the exit but effort will be intensified to secure other willing investors. NNPC and the Federal Government remain committed to this project,” she added.

– Collins Olayinka, The Guardian

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