Ogun State and the Nigerian National Petroleum Company Limited (NNPC) have begun discussions to revive the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside. This development is part of a larger $7 billion maritime and industrial development along the state's coastline. The OKLNG project is expected to provide a major energy base for industries within the emerging coastal economic corridor.
The discussions between Ogun State and NNPC come after the state government signed Memoranda of Understanding with DP World for the development of the Gateway Deep Sea Port and the Ogun State Blue Marine Special Economic Zone. These agreements, signed in Paris, are expected to attract over $7 billion in initial investment and create more than 50,000 direct jobs. The Gateway Deep Sea Port will have a four-kilometre berth and an 18-metre draft.
Governor Dapo Abiodun received NNPC officials in Abeokuta, stating that the renewed interest in the LNG project would strengthen Ogun's emergence as a major industrial and energy hub. He noted that the proposed LNG facility could provide a major energy base for industries within the emerging coastal economic corridor and contribute to meeting the energy needs of the wider South-West.
According to Governor Abiodun, discussions with NNPC focused on land acquisition, incentives, and other requirements necessary to facilitate the take-off of the project. The state government has committed to providing the necessary cooperation and guarantees. The Governor cited the NNPC facility in Bonny, Rivers State, where about 14,000 people are employed, as an example of the potential employment and multiplier effects of the OKLNG project.
NNPC Group Chief Financial Officer, Mr Adedapo Segun, stated that the company is undertaking a comprehensive review of the challenges that stalled the project in the past. The objective is to find lasting solutions and resuscitate the project. NNPC Executive Vice President, Gas, Power and New Energy, Mr Lekan Ogunleye, disclosed that the company would require approximately 1,728 hectares for the LNG plants, utilities, storage facilities, and associated infrastructure.
The OKLNG project is expected to supply gas to industries within the economic zone as well as businesses and communities across Ogun and the wider South-West. The project adds an important energy dimension to the coastal investment corridor being developed around Ogun Waterside. President Bola Ahmed Tinubu has identified the OK LNG project as part of the broader strategic corridor linking maritime infrastructure, industry, energy, and trade.
The simultaneous movement on the OKLNG project and the DP World-backed port and Blue Marine Special Economic Zone represents the development of complementary infrastructure around the same coastal corridor. This development links energy supply with maritime access, industrial production, logistics, and export markets. The emerging Ogun Waterside corridor aims to create an integrated platform for energy, maritime commerce, manufacturing, logistics, and international trade.
Key points
- Ogun State and NNPC partner to revive the Olokola Liquefied Natural Gas project.
- The project is part of a larger $7 billion maritime and industrial development along Ogun's coastline.
- The OKLNG project is expected to provide a major energy base for industries within the emerging coastal economic corridor.
