The Ogun State government and the Nigerian National Petroleum Company Limited (NNPC) have initiated talks to revive the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside. This development is a significant addition to the emerging $7 billion maritime and industrial development along the state's coastline. The project is expected to create an integrated ecosystem for energy, manufacturing, maritime trade, and logistics.
The Ogun State government recently signed a Memorandum of Understanding with global ports and logistics operator DP World for the creation 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 anticipated to attract over $7 billion in initial investment and create more than 50,000 direct jobs.
The Gateway Deep Sea Port is planned to have a four-kilometre berth and an 18-metre draft, while the adjoining economic zone aims to support manufacturing, processing, logistics, and export-oriented industries. During a meeting with NNPC officials in Abeokuta, Governor Dapo Abiodun expressed that the renewed interest in the LNG project would strengthen Ogun's role as a significant industrial and energy hub.
Governor Abiodun stated that the proposed LNG facility, which has been in planning for over three decades, could serve as a vital energy source for industries within the emerging coastal economic corridor and help meet the energy needs of the broader South-West region. He noted the significance of reviving the project right after the agreement with DP World, pointing out that the port, marine economy, industrial zone, and LNG project could collectively create an integrated ecosystem.
Abiodun shared that discussions with NNPC centred on land acquisition, incentives, and other requirements needed to facilitate the project's launch, with the state government committing to providing the necessary cooperation and guarantees. The governor estimated that the project could generate substantial employment and positive economic effects, citing the example of the NNPC facility in Bonny, Rivers State, which employs about 14,000 people.
The renewed push for OKLNG enhances the energy dimension of the coastal investment corridor being developed around Ogun Waterside. The Federal Government identified the OK LNG project as part of a broader strategic corridor linking maritime infrastructure, industry, energy, and trade during the Paris signing ceremony. Under the emerging development framework, the Gateway Deep Sea Port will provide maritime access for transporting raw materials, equipment, and finished products.
NNPC Group Chief Financial Officer Mr Adedapo Segun stated that the company is conducting a comprehensive review of the challenges that previously hindered the project, aiming to find lasting solutions and revitalise it. Approximately 1,728 hectares will be needed for the LNG plants, utilities, storage facilities, and associated infrastructure. The project is expected to fortify the energy supply needed to support gas-based industries and other businesses.
Key points
- The Ogun State government and NNPC are partnering to revive the Olokola Liquefied Natural Gas project as part of a $7 billion port and marine economy project.
- The project is expected to create over 50,000 direct jobs and attract $7 billion in initial investment.
- The Gateway Deep Sea Port and Ogun State Blue Marine Special Economic Zone will support manufacturing, processing, logistics, and export-oriented industries.
