The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have initiated talks to revive the long-abandoned Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside Local Government Area. This development adds a significant energy component to the emerging $7 billion maritime and industrial corridor along the state's coastline. The project has been on the drawing board for over 30 years.
The talks between Ogun State and NNPC come on the heels of the state government's recent signing of Memoranda of Understanding (MoUs) with global logistics giant DP World. The agreements, signed in Paris in the presence of President Bola Ahmed Tinubu, are expected to attract over $7 billion in initial investment and create more than 50,000 direct jobs. The proposed Gateway Deep Sea Port will feature a four-kilometre berth and an 18-metre draft.
Governor Dapo Abiodun disclosed the renewed push for OKLNG while receiving NNPC officials in Abeokuta. He emphasized that the return of the LNG project would further position Ogun as a leading industrial and energy hub. Abiodun noted that the LNG facility could serve as a major energy base for industries within the coastal corridor and help meet energy demands in the South-West.
The Governor highlighted the significance of reviving the OKLNG project, especially coming shortly after the DP World deal. He stressed that the combination of the seaport, marine economic zone, and LNG project would create an integrated ecosystem for energy, manufacturing, and maritime trade. Abiodun assured NNPC of the state's full cooperation and guarantees for the project's success.
Discussions between Ogun State and NNPC centred on land acquisition, incentives, and other requirements needed to kick-start the project. NNPC Group Chief Financial Officer, Adedapo Segun, stated that the company is reviewing challenges that stalled the project in the past to find lasting solutions. NNPC aims to site the LNG plant along the coastline of Ogun State.
NNPC Executive Vice President, Gas, Power and New Energy, Lekan Ogunleye, outlined the company's requirements for the project, including 1,728 hectares for LNG plants, utilities, storage, and associated infrastructure, as well as 2.5 kilometres of Atlantic frontage for up to three LNG jetties. Ogunleye congratulated the people of Ogun State, saying successful implementation would significantly boost the state's economy.
The Federal Government has listed OKLNG as part of the strategic corridor linking maritime infrastructure, industry, energy, and trade. The corridor is expected to link with the Ogun section of the Lagos-Calabar Coastal Highway, connecting the zone to Lagos, the hinterland, and wider African markets. The project is anticipated to create massive employment and economic multiplier effects, similar to the NNPC facility in Bonny, Rivers State, which employs about 14,000 people.
Key points
- Ogun State and NNPC to revive long-abandoned Olokola Liquefied Natural Gas project.
- $7 billion maritime corridor expected to attract over $7 billion in initial investment and create 50,000 direct jobs.
- OKLNG project to boost Ogun State's economy and provide energy for industries within the coastal corridor.
