DPR issues license to establish Ajaokuta LNG Project

The Department of Petroleum Resources (DPR) has issued a License to Establish (LTE) for the Liquefied Natural Gas (LNG) facility in Ajaokuta, Kogi State.

The LNG project is being developed via a joint venture between Transit Gas Nigeria Limited, a subsidiary of Axxela Limited, and Nigerian Gas Marketing Company (NGMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC). The Federal Ministry of Environment has also approved the project’s Environmental and Social Impact Assessment (ESIA).

DPR’s issuance of the LTE and the Federal Ministry of Environment’s ESIA approval are significant project milestones demonstrating the critical regulatory support for the LNG facility development. The project is on a fast track to completion as it recently received a Gas Purchase Order (GPO) for its feed gas from the Gas Aggregation Company of Nigeria (GACN).

NGMC and Transit Gas have adopted a world-class development approach in collaborating with a global team of experienced Engineering, Procurement and Construction (EPC) contractors, technology providers, and other professionals to ensure project delivery in accordance with international best practices and safety standards.

The establishment of the LNG facility in the strategically located industrial hub of Ajaokuta will assure the safe supply of natural gas in liquefied form via specialised cryogenic trucks across Nigeria. The largest block of beneficiaries are commercial and industrial businesses in the North which have been considered stranded so far due to the absence of gas pipeline infrastructure.

LNG is an environmentally-friendly fuel for power, process and feedstock needs that provides up to 40 per cent in cost savings, compared to alternative liquid fuels such as diesel.