The Ogun State government and the Nigerian National Petroleum Company Limited (NNPC) are in talks to revive the stalled Olokola Liquefied Natural Gas (OGLNG) project, which has been on the drawing board for over 30 years. The renewed discussions come as part of a broader plan to transform the state's coastline into an energy, maritime, and industrial hub. This development is expected to attract an initial investment of $10 billion and create over 50,000 direct jobs.
The Ogun State government recently 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 proposed port will have a four-kilometre berth and an 18-metre draft, while the adjoining economic zone is planned to accommodate manufacturing, processing, logistics, and export-oriented industries.
Governor Dapo Abiodun said the renewed engagement on OGLNG could provide an important energy foundation for the industrial development expected around the port and special economic zone. He described the proposed facility as a potential energy anchor for industries expected to emerge around the port and special economic zone, and also help meet the energy needs of businesses and communities across Ogun and the wider South-West.
The OGLNG project requires approximately 1,728 hectares for the LNG plants, utilities, storage facilities, and related infrastructure. The project would also need about 2.5 kilometres of dedicated Atlantic frontage to support marine operations and safety requirements for up to three LNG jetties. NNPC Group Chief Financial Officer, Adedapo Segun, said the company was examining the challenges that stalled OGLNG in the past and working towards solutions that could enable its resuscitation.
The renewed OGLNG discussions form part of a wider coastal development strategy being promoted by Ogun and supported by the Federal Government. The Presidency has identified the OGLNG project as part of a broader corridor linking energy, maritime infrastructure, industry, and trade. President Bola Ahmed Tinubu has described the integration of the port and economic zone as an industrial ecosystem.
The proposed development is also expected to benefit from improved road connectivity. The Ogun section of the Lagos-Calabar Coastal Highway is planned as part of the wider infrastructure network serving the area, providing an important connection between the emerging coastal investments, Lagos, the Nigerian hinterland, and regional markets.
The Gateway Deep Sea Port is being developed under a public-private partnership framework, with private investors expected to provide the funding while the Federal government serves as guarantor. The combination of the port, Blue Marine Special Economic Zone, and OGLNG project creates the prospect of an integrated platform where energy, maritime transport, manufacturing, logistics, and international trade reinforce one another.
Key points
- The OGLNG project is expected to attract an initial investment of $10 billion and create over 50,000 direct jobs.
- The project requires approximately 1,728 hectares for the LNG plants, utilities, storage facilities, and related infrastructure.
- The proposed development is part of a wider coastal development strategy being promoted by Ogun and supported by the Federal Government.
