Nigeria has stepped up its efforts to deliver natural gas to areas not connected to the national gas pipeline network by creating a virtual LNG pipeline.
Under the gas sale and aggregation agreement (GSSA), the state-run NNPC together with Total and Gas Aggregation Company of Nigeria (GACN) will deliver 74 million standard cubic feet (MMscf) of gas to the Greenville Oil and Gas Company.
The volumes delivered to Greenville will be processed into liquefied natural gas (LNG) at the company’s $500 million mini-LNG facility in Rumuji, River State, a first such plant in Nigeria, the country’s ministry of petroleum resources said in a statement.
This would allow for the transportation of gas to various locations and stranded industries around the country through a virtual pipeline of specialized LNG trucks.
The NNPC/Total joint venture will fulfill its domestic supply obligation (DSO) by supplying the gas to the project.
The Greenville Mini-LNG plant has an installed production capacity of 2,250mt/day, and is powered by 50mw gas-fired captive plant among other ancillary infrastructure, the ministry said in a statement on Tuesday.
In order to facilitate delivery, Greenville has purchased LNG transportation trucks and tankers, and is constructing retail stations and secondary storage facilities across the nations for logistics support.
The plant is ready to commence operations before the end of the year, however, the company is already planning to expand its capacity to 5,250mt/day.