31 August 2017, Sweetcrude, Abuja — The Federal Government has disclosed that the country’s first domestic mini-Liquefied Natural Gas (LNG) plant built by Greenville Oil and Gas Limited would be ready to commence operations before the end of this year.
The Ministry of Petroleum Resources, in a statement by its Director of Press, Mr. Idang Alibi, said the Greenville $500 million Mini-LNG plant has an installed production capacity of 2,250 metric tonnes per day (mt/day), and is powered by 50 megawatts (MW) gas-fired captive plant among other ancillary infrastructure.
Alibi stated that the plant, when operational, has the capacity to meet the energy requirements of Nigerian businesses at this critical stage of the country’s development.
He said in order to facilitate delivery Greenville has purchased LNG transportation trucks and tankers, and is constructing retail stations and secondary storage facilities across the nations for logistics support.
He said the project is a significant milestone in the development of Nigeria’s gas market as it underpins gas supply to the first domestic LNG project.
He said, “Gas supplied to Greenville by the NNPC/Total Joint Venture will be processed into Liquefied Natural Gas (LNG) at the Company’s mini– LNG facility, the first of its kind in Africa.
“This development allows for the transportation of gas to various locations and stranded industries around the country through a virtual pipeline of specialized LNG trucks and presents an option to gas supply through the existing pipeline network.
“The NNPC/Total Joint Venture will fulfill its Domestic supply Obligation (DSO) by supplying the much needed gas to the project, after thorough negotiations supervised by the Federal Ministry of Petroleum Resources to enhance the local utilization of gas for national development as envisaged in the National Gas Policy.”
He added that the project further underscores the resolve of the Federal Government through the Ministry of Petroleum Resources to encourage private sector participation in the Oil and Gas sector and creation of jobs which are two of the key initiatives championed by the petroleum ministry over the last two years.
He averred that the Gas Supply and Aggregation Agreement (GSAA) has the capacity to create up to 2,000 direct jobs, and 5,000 indirect jobs; provide an avenue for seamless movement of gas to stranded locations across the country; facilitate the use of gas for power generation; revive gas based industries, and supply gas to large industrial ventures and transportation.
According to him, the project will significantly contribute towards the displacement of more harmful and expensive fuel sources; conserve much needed foreign exchange, adding that the improved economic activity would also increase the Federal Governments revenue base, and support the Administration’s revenue diversification agenda.