Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have commenced fresh discussions on the revival of the long-delayed Olokola Liquefied Natural Gas (OKLNG) project as the state advances plans for a major maritime and industrial development along its coastline.
The renewed push for the LNG project comes shortly after Ogun State signed Memoranda of Understanding with global ports and logistics operator, DP World, for the development of the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.
The agreements, signed in Paris in the presence of President Bola Ahmed Tinubu, are expected to attract more than $7 billion in initial investment and create over 50,000 direct jobs.
Receiving a delegation from NNPC in Abeokuta on Wednesday, Governor Dapo Abiodun said the revival of OKLNG would strengthen the state’s emergence as an industrial and energy hub.
“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,” Abiodun said.
The Governor said the LNG project, which had remained on the drawing board for more than three decades, could provide an energy base for industries within the emerging coastal economic corridor and contribute to meeting the energy needs of Ogun and the wider South-West.
He said the timing of the renewed discussions was significant, given the ongoing development of the Gateway Deep Sea Port and the Blue Marine Special Economic Zone.
“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,” he said.
Abiodun said discussions with NNPC were focused on land acquisition, incentives and other requirements needed to facilitate the take-off of the project, assuring the company of the state government’s cooperation.
“They will pay for land in the Economic Zone, and we will be giving them all the cooperation that this project deserves. We will give them all the assistance and guarantees,” the Governor said.
According to him, the project could generate substantial employment opportunities and stimulate economic activities across the state and the region.
Abiodun cited the NNPC facility in Bonny, Rivers State, where he said about 14,000 people are employed, adding that the proposed Ogun facility could supply gas to industries within the economic zone as well as businesses and communities across Ogun and the wider South-West.
The renewed effort to revive OKLNG forms part of a broader development plan for Ogun Waterside, where the proposed deep sea port, special economic zone and LNG project are expected to complement one another.
The Gateway Deep Sea Port is planned with a four-kilometre berth and an 18-metre draft, while the adjoining economic zone is expected to support manufacturing, processing, logistics and export-oriented businesses.
President Tinubu had described the integration of the port and economic zone as an industrial ecosystem, with the emerging coastal corridor expected to connect maritime infrastructure with energy, manufacturing, logistics and trade.
Speaking on the LNG project, NNPC Group Chief Financial Officer, Adedapo Segun, said the company was conducting a comprehensive review of the challenges that stalled the project in the past.
“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.
Also, NNPC Executive Vice President, Gas, Power and New Energy, Lekan Ogunleye, disclosed that the company would require approximately 1,728 hectares for the LNG plants, utilities, storage facilities and associated infrastructure.
He added that the project would require about 2.5 kilometres of dedicated Atlantic frontage to support marine traffic and safety requirements for up to three LNG jetties.
Ogunleye described the proposed project as significant to the economic fortunes of Ogun State, expressing optimism about its potential impact on the state.
