Ogun, NNPC Move to Revive OKLNG as $7bn Coastal Development Advances

The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC Ltd.) have opened discussions on reviving the long-delayed Olokola Liquefied Natural Gas (OKLNG) project as major port and industrial developments take shape along the state’s coastline.

The proposed LNG project in Ogun Waterside is being considered as part of a broader coastal development programme that includes the planned Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.

The Ogun Government recently signed agreements with global ports and logistics company DP World for the development of the port and economic zone. The projects are expected to attract more than $7 billion in initial investment and create more than 50,000 direct jobs, according to state officials.

Speaking after receiving a delegation from NNPC in Abeokuta, Governor Dapo Abiodun said discussions with the national oil company were focused on the requirements for bringing the OKLNG project back on stream.

Abiodun said the state was prepared to provide support on issues including land acquisition, incentives and other requirements needed to facilitate the project.

The OKLNG project has been under consideration for more than three decades. If revived, the facility could provide gas for industries within the emerging coastal economic corridor and support energy supply to businesses and communities in Ogun and the wider South-West.

The governor said the LNG project could complement the proposed deep seaport and special economic zone by linking energy supply with manufacturing, logistics, maritime trade and export-oriented activities.

NNPC Group Chief Financial Officer, Adedapo Segun, said the company was reviewing the challenges that previously stalled the project in an effort to identify solutions and determine how it could be resuscitated.

NNPC Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, said the proposed LNG development would require approximately 1,728 hectares for the plants, utilities, storage facilities and related infrastructure.

Ogunleye also said the project would require about 2.5 kilometres of dedicated Atlantic frontage and could include up to three LNG jetties.

The LNG project is being discussed alongside the planned Gateway Deep Sea Port, which is designed with a four-kilometre berth and an 18-metre draft.

The adjoining Blue Marine Special Economic Zone is expected to support manufacturing, processing, logistics and export-oriented industries.

The projects are also expected to connect with other infrastructure in the area, including the Ogun section of the Lagos-Calabar Coastal Highway.

The wider development is intended to create an integrated coastal corridor linking maritime transportation, energy, manufacturing, logistics and international trade.

The proposed revival of OKLNG would add a major energy component to Ogun State’s planned port and industrial investments. The project, however, remains at the discussion and review stage, with NNPC assessing the challenges that previously prevented its development.