The Nigerian Gas Marketing Company has been issued a Gas Purchase Order by the Gas Aggregation Company of Nigeria for the development of a Liquefied Natural Gas plant in Ajaokuta, Kogi State.
A statement on Friday described the project as a joint venture partnership with Transit Gas Nigeria Limited, a subsidiary of Axxela Limited, which is a gas and power portfolio company.
It said with gas supply assured, the GPO was a project milestone that would help to ensure the achievement of over 40 per cent in cost-savings for commercial and industrial businesses across the country that adopted the LNG solution for their power or process needs.
According to the statement, the liquefaction plant is strategically located in the middle of the country to enable easy access of the LNG trucks to the northern region’s stranded gas market and other parts of the country.
It said LNG storage facilities would also be installed at customer locations to ensure continuous gas supply.
The statement read in part, “Natural gas (predominantly methane) is an environmentally friendly fuel that burns cleaner than other fossil fuels. Gas-fired equipment is more efficient and has significantly contributed to the reduction of greenhouse gas emissions across the world.
“The LNG plant is expected to be completed by next year and will boost the productivity of existing industries, attract new investments into the country, and also create jobs for Nigeria’s growing populace.”