NNPC, Ogun Set To Revive $10bn OgunLNG Project

As the long-delayed gas project enters a fresh phase of revival, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has disclosed that it is set to invest an initial $10 billion in the development of the OgunLNG project in Ogun Waterside, Ogun State.

Speaking to journalists after a meeting with officials of the company led by its Chief Financial Officer, Mr. Adedapo Segun, in Iperu, Ikenne Local Government Area of the state, Governor Dapo Abiodun disclosed that NNPC had commenced discussions with the state government on the revival of the project, which has remained on the drawing board for more than three decades.

The development comes barely a week after the Ogun State government signed agreements with global ports and logistics giant, DP World, for the development of the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone, in a deal expected to attract more than $7 billion in initial investment.

Abiodun described the renewed interest in OgunLNG as a significant development for Ogun State and Nigeria, noting that the project has the potential to strengthen the country’s energy supply while providing gas for industries and supporting large-scale industrialisation.

“Today, we just received members of the Nigerian National Petroleum Company who have come to meet with us on behalf of the Group Chief Executive Officer. They have come to discuss with us the LNG plant that was originally designed and called OKLNG, which was meant to be situated on our coastline.

Now they have brought the project back to life,” the Governor said.

According to him, the discussions focused on land requirements, incentives and other arrangements necessary to facilitate the smooth take-off of the project, with the state government assuring NNPC of its full cooperation.

He said the project would have significant multiplier effects, particularly in employment generation and the provision of gas to industries within the economic zone, Ogun State and the wider South-West region.

The governor cited the NNPC’s facility in Bonny, Rivers State, where he said about 14,000 people are employed, as an indication of the potential employment impact of the OgunLNG project.

Abiodun said the revival of OgunLNG immediately after the signing of the DP World agreements was particularly significant, as the LNG project, deep seaport and Blue Marine Special Economic Zone could collectively create an integrated ecosystem linking energy, manufacturing, maritime trade, logistics and exports.

“Last Wednesday, we signed an MoU on the Deep Sea Port and today we have the NNPC team here discussing the activation of the LNG plant,” he said.

The Governor said the development would further reinforce Ogun’s position as an industrial centre while positioning Ogun Waterside as an emerging energy and maritime hub.

The renewed OgunLNG initiative comes against the backdrop of the agreement signed by Ogun State and DP World in Paris for the Gateway Deep Sea Port and Ogun State Blue Marine Special Economic Zone.

The agreement provides for a $7 billion-plus initial investment, with the proposed economic zone covering approximately 10,000 hectares and expected to create more than 50,000 direct jobs. The Gateway Deep Sea Port is planned with a four-kilometre berth and an 18-metre draft.

Abiodun described the deep seaport as a Public-Private Partnership, explaining that the project would be funded by private investors, with the Federal Government providing the necessary guarantees.

He also commended President Bola Ahmed Tinubu for his support for the revival of strategic economic projects, saying OgunLNG would contribute to the Federal Government’s efforts to deepen gas utilisation, expand energy supply and support economic growth.

Speaking on the NNPC engagement, Segun said the company was undertaking a comprehensive assessment of the factors that stalled the project in the past, with a view to finding lasting solutions and resuscitating it.

“We are here to engage with the government of Ogun State on the project we are looking to site along the coastline of the state,” Segun said.

NNPC’s Executive Vice President, Gas, Power and New Energy, Mr. Lekan Ogunleye, in his remarks noted that the company would require approximately 1,728 hectares for the LNG plants, utilities, storage facilities and associated infrastructure.

He added that approximately 2.5 kilometres of dedicated Atlantic frontage would be required to support marine traffic and safety requirements for up to three LNG jetties.

Ogunleye congratulated the people of Ogun State on the proposed development, saying the project could significantly change the economic fortunes of the area.

The revival of OgunLNG also aligns with NNPC’s broader push to expand Nigeria’s gas production, utilisation and export capacity, leveraging the country’s gas resources to support domestic industrialisation and strengthen its position in the global LNG market.

For Ogun State, the simultaneous movement on the $10 billion OgunLNG project, the $7 billion-plus Gateway Deep Sea Port and the 10,000-hectare Blue Marine Special Economic Zone creates the framework for a major coastal economic corridor.

The convergence of large-scale energy infrastructure, maritime access, industrial production, logistics and export capacity could provide the foundation for a new generation of gas-based industries and manufacturing investments, while opening up the Ogun Waterside axis to substantial economic activity.