NNPCL Expands Gas Expansion Drive With Chinese Firms
By Naija Enquirer Staff
The Nigerian National Petroleum Company Limited (NNPCL) has launched a broader initiative aimed at accelerating Nigeria’s gas development programme and expanding the country’s liquefied natural gas (LNG) infrastructure.
To achieve this target, the national oil company has engaged Chinese firms to support a range of gas-focused initiatives spanning flare-gas-to-LNG projects, floating LNG solutions, and onshore LNG developments, alongside gas-fired power generation and industrial facilities utilising domestic gas feedstock.
In Abuja, NNPCL signed a tripartite Memorandum of Understanding (MoU) with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd. (PCCS) to establish a structured collaboration framework across key segments of Nigeria’s natural gas value chain.
Managing Director of PCCS, Tim Tian, said the MoU was signed in the presence of the Group Chief Executive Officer of NNPCL, Bayo Ojulari; the Executive Vice President for Gas, Power & New Energy, Mr. Olalekan Ogunleye; and the General Manager of NNPC Gas & Power Investment Services, Mr. Ibrahim Hamza.
Tian explained that the MoU is designed to align international technical expertise with Nigeria’s domestic energy priorities and provide a formal governance structure that will support the transition of identified opportunities from technical feasibility stages to full commercial operations.
“Our role is to combine proven modular engineering with locally grounded commercial structures that make projects investible and deliverable,” Tian said, adding that fast-tracking scalable gas infrastructure will be critical to converting Nigeria’s gas resources into jobs, reliable electricity and industrial growth.
Engagement Across Nigeria’s Energy Sector
Tian disclosed that the signing ceremony was followed by an extensive engagement programme involving the China Gas and PCCS delegation across Nigeria’s energy sector.
According to him, discussions with Heirs Energies Limited explored downstream compressed natural gas (CNG) and LNG opportunities, including a 15 million standard cubic feet per day (15MMSCFD) supply discussion and project delivery considerations.
He added that separate meetings were also held with refinery leadership, focusing on the integration of gas supply into refining and wider industrial operations.
The delegation further held discussions with the Ministry of Finance Incorporated (MOFI) regarding potential financing structures suitable for large-scale gas infrastructure development in Nigeria.
Site Inspections and Operational Assessments
Alongside the engagements, PCCS said the delegation conducted site inspections at several operational facilities, including CNG mother stations, the NGML-NIPCO refuelling station at the Port of Lagos, and logistics bases in Shagamu operating CNG and LNG-powered heavy-duty fleets.
The visits provided direct operational insight into compression systems, daily throughput performance, fleet utilisation rates, and transport-linked gas demand patterns.
“With the framework now in place, the parties will proceed with technical evaluations and structured commercial discussions in line with the agreed scope,” PCCS stated.
Driving LNG, Gas-to-Power and Industrial Growth
NNPCL said the initiative reflects its strategy to deepen Nigeria’s domestic gas utilisation, expand LNG export capacity and accelerate gas-to-power and industrial development.
The company noted that the Chinese partners involved have a track record in developing and operating refineries, LNG and CNG plants, as well as gas-to-power projects across Africa and Southeast Asia, supporting the integration of international technical standards with locally driven project execution.
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