Olokola LNG Terminal
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Olokola LNG Terminal, also called OK LNG, was a proposed LNG terminal in Cross River State, Nigeria. As of 2017, there had been no developments in over four years and the project is presumed to be cancelled. In 2023, Nigerian National Petroleum Corporation again sought investors for the project.[1]
Location
Project details
- Owner: Nigerian National Petroleum Corporation (Gov't of Nigeria)[2]
- Location: Olokola Free Trade Zone, Cross River State, Nigeria
- Coordinates: 5.021667, 8.320278 (approximate)
- Type: Export[2]
- Trains: 2[1]
- Formerly 4[2]
- Capacity: 12.6 mtpa[1]
- Formerly 22 mtpa (5.5 mtpa per train)[2]
- Status: Proposed[1]
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
Background
The Okolola liquefied natural gas (LNG) terminal project was initiated in 2005. The project would have a total capacity of 12.6 million metric tons per year (mtpa), or 1.81 billion cubic feet per day (bcfd). The original price tag was $9.8 billion. The Nigerian National Petroleum Corporation had a 49.5% stake, Shell and Chevron each had 18.5%, and the UK's BG Group (which Shell bought in 2016) had 13.5%. Start-up was originally scheduled for 2011.[3] An MOU was signed in 2005, and an investors' agreement in 2007.[4]
In 2009, BG Group pulled out of the project, and in August 2013, Shell and Chevron pulled out, leaving NNPC as the sole shareholder. The companies were reportedly frustrated at the lack of progress (and low gas prices didn't help).[4]
Although NNPC has declared its commitment to the project as recently as December 2016,[5] there has been much speculation in the Nigerian press that the project is dead. The government has spent $600 million on the project.[6][7] There have been no development updates since 2013 and it is presumed to be cancelled.
According to the International Gas Union’s World LNG 2017 report, Nigeria was the fourth largest LNG exporter by share after Qatar, Australia, and Malaysia between 2015 and 2016.[8]
In November 2023, NNPC said that it was in conversations with offshore investors to revive two old projects: Brass LNG Terminal and Olokola LNG Terminal.[1]
Articles and resources
References
- ↑ 1.0 1.1 1.2 1.3 1.4 admin (2023-11-15). "NNPC Ltd Sets to Resuscitate Brass and Olokola LNG Projects Returns to Negotiation Table with Offshore Investors". Financial Energy Review. Retrieved 2024-07-18.
- ↑ 2.0 2.1 2.2 2.3 NNPC – Olokola LNG Plant – Lagos - Project Profile, Market Research, accessed April 7, 2021
- ↑ Nigerian Olokola LNG to start up in 2012 - Obasanjo, Reuters, 18 Apr. 2007.
- ↑ 4.0 4.1 Chevron, Shell pull out of Olokola LNG project, Vanguard, 23 Aug. 2013.
- ↑ NNPC Reiterates Commitment to Brass, OK LNG, NNPC press release, 29 Dec. 2016.
- ↑ Why NNPC May Cancel Olokola LNG Project in Ogun, Ondo States, This Day, 3 Jan. 2017.
- ↑ How FG made Brass, OKLNG projects fail — Gaius-Obaseki, others, Vanguard, 14 Mar. 2017.
- ↑ "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
