Ziggy Ojiegbe

The Nigerian National Petroleum Company Limited has signed major gas commercialization agreements with two Asian firms in a move aimed at expanding domestic gas processing, power generation and industrial gas utilization across Nigeria.

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The agreements, executed under a tripartite Memorandum of Understanding, commit China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd. (PCCS) to collaborate with NNPC on a range of liquefied natural gas development projects. These include flare-gas-to-LNG conversion, floating LNG solutions and onshore LNG initiatives, as well as gas-fired power generation and industrial facilities that will utilize domestic gas feedstock.

Managing Director of PCCS, Tim Tian, said the MoU establishes a structured framework for cooperation across key segments of Nigeria’s natural gas value chain. The agreement was signed at NNPC’s headquarters in Abuja in the presence of the company’s Group Chief Executive Officer, Bayo Ojulari, Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye, and General Manager of NNPC Gas & Power Investment Services, Ibrahim Hamza.

According to Tian, the MoU provides a formal governance structure to move identified opportunities from technical feasibility studies to commercial operations. He said the partnership is designed to align international technical expertise with Nigeria’s domestic energy priorities. “Our role is to combine proven modular engineering with locally grounded commercial structures that make projects investible and deliverable,” he said, noting that accelerating scalable gas infrastructure would be critical to converting gas resources into jobs, reliable power supply and industrial growth.

Following the signing, the China Gas and PCCS delegation embarked on a series of engagements across Nigeria’s energy sector. Discussions with Heirs Energies Limited focused on downstream compressed natural gas and LNG opportunities, including a proposed 15 million standard cubic feet per day gas supply arrangement and related project delivery considerations. Separate meetings were also held with refinery operators to explore integration of gas supply into refining and industrial operations.

The delegation further engaged the Ministry of Finance Incorporated on potential financing structures for large-scale gas infrastructure projects. Site inspections were conducted at operational facilities, including CNG mother stations, the NGML-NIPCO refueling station at the Port of Lagos, and logistics bases in Shagamu operating CNG and LNG-powered heavy-duty fleets. The visits provided operational insight into compression systems, daily throughput levels, fleet utilization and transport-linked gas demand.

PCCS said that with the collaboration framework now in place, the parties will proceed with detailed technical evaluations and structured commercial discussions in line with the agreed scope. The company stated that it has experience developing and operating refineries, LNG and CNG plants, and gas-to-power projects across Africa and Southeast Asia, positioning it to bridge international technical standards with localized project execution in Nigeria.