Nigeria's NNPC, Partners to Build Five Mini-LNG Plants for Domestic Gas Supply

(Reuters) — State-owned Nigerian National Petroleum Company (NNPC) has begun construction of five mini-liquefied natural gas (LNG) plants as part of government efforts to drive economic growth and boost gas usage, a company spokesperson said late on Thursday.

Nigeria, Africa's top energy producer, holds the continent's largest gas reserves of more than 200 trillion cubic feet and seeks to develop the commodity to boost supplies to industries, power plants and for exports, and to end routine flaring by 2030.

NNPC spokesperson Olufemi Soneye said the plants, with a planned combined capacity of 97 million standard cubic feet per day, aim to expand domestic gas access, support off-grid industries, and curb carbon emissions.

NNPC holds stakes in three of the plants alongside Gasnexus and BUA Group Ltd which will be located in Ajaokuta, in central Nigeria. Private firms Highland LNG and LNG Arete will develop the remaining two, Soneye said in a statement.

"This is particularly important for regions that currently lack access to gas pipeline infrastructure," NNPC chief Mele Kyari said in the statement, adding the facilities will help transport gas efficiently over long distances to households, industries, and businesses.

Nigeria has been prioritizing gas development and use in recent years to stimulate growth amid declining oil revenues. The projects highlight a broader shift to capitalize on gas for grid stability and export markets.

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