By Abdullahi Lukman
The Federal Government has signed a $27 million deal with LNG Arete to develop a Liquefied Natural Gas (LNG) project in Ajaokuta, Kogi State, under the Presidential Compressed Natural Gas Initiative (PCNGI).
The project, which is expected to boost the transportation of gas across the country, will particularly focus on improving supply to the northern regions of Nigeria.
During the signing ceremony held in Abuja on Friday, Michael Oluwagbemi, the Program Director of PCNGI, highlighted the importance of the project in strengthening the nation’s gas infrastructure.
Oluwagbemi revealed that LNG Arete has already committed $12 million as counterpart funding for the initiative, underscoring the company’s dedication to the project.
The total cost of the project is estimated at $27.3 million, with $6 million contributed by PCNGI. Additional funding is expected to come from the Nigerian Midstream and Downstream Gas Infrastructure Fund.
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Oluwagbemi also provided a timeline for the project, stating that it is projected to be completed within 12 to 18 months. He assured that all necessary equipment required for the project was already available, ensuring a smooth and efficient implementation process.
The initiative aims to enhance the national gas transportation network and contribute to energy security by enabling the movement of LNG to more regions of Nigeria.
This agreement is seen as a crucial step in the government’s broader strategy to expand the country’s energy infrastructure and improve the accessibility of natural gas, a key resource for powering industries and households.
By facilitating the transportation of gas from Ajaokuta to the northern parts of Nigeria, the project is expected to play a key role in supporting both industrial development and energy needs across the region.
The partnership between PCNGI and LNG Arete highlights the increasing role of private sector investment in Nigeria’s energy sector.
It is hoped that the project will contribute to the country’s ongoing efforts to diversify its energy sources and promote cleaner, more efficient energy solutions.
