The state-run Nigerian National Petroleum Corporation (NNPC) and Anglo-Dutch oil giant Shell have signed a six billion dollar liquefied natural gas (LNG) project, expected to come on stream in 2011, an official statement said Tuesday.
The signing on Monday in Abuja of a Memorandum of Understanding by the sponsors of the Olokola LNG (OKLNG), the Olokola Free Trade Zone Company and the Nigeria Export Processing Zones Authority "marks a further milestone in the progression of the OKLNG project," said the statement from Shell.
The partners in the project are the NNPC (49.5 percent), Chevron OKLNG Holdings Limited (18.5 percent), Shell Gas & Power Developments B.V. (18.5 percent) and BG International Limited (13.5 percent).
The design of the OKLNG complex is for four LNG trains of 5.5 million tons per year capacity each, with a total production of 22 million tons per year of LNG. The complex will also produce substantial quantities of natural gas liquids as a by-product.
The project is to be implemented in phases, beginning with two liquefied natural gas trains (plants), with a total capacity of 11 million tons per year. Gas supply to the project will be from the upstream operations of affiliates of the sponsors.