NNPC Inks MoU with China Gas, PCCS to Boost LNG, CNG, Gas-to-Power
The Nigerian National Petroleum Company Limited has signed a tripartite Memorandum of Understanding (MoU) with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd (PCCS) to accelerate the development of liquefied natural gas (LNG), compressed natural gas (CNG), and gas-to-power infrastructure across Nigeria.
The agreement, signed in Abuja, is aimed at deepening collaboration between the three companies in advancing Nigeria’s gas commercialisation agenda and strengthening domestic energy security. The partnership is expected to focus on LNG production and distribution, CNG expansion for transportation and industrial use, and the development of gas-fired power generation projects. According to officials familiar with the deal, the MoU establishes a framework for technical cooperation, project development, financing discussions, and commercial negotiations. Key areas under consideration include flare-gas-to-LNG conversion projects, floating LNG (FLNG) solutions, modular LNG plants, and onshore gas processing facilities. The initiative also targets increased supply of gas for power generation to address Nigeria’s persistent electricity shortages. By leveraging domestic gas resources, the partners aim to support more stable and affordable power supply to industries and households. As part of follow-up engagements after the signing ceremony, the delegation held discussions with Heirs Energies Limited to explore downstream LNG and CNG investment opportunities. Meetings were also conducted with the Ministry of Finance Incorporated (MOFI) to examine potential financing structures for large-scale gas infrastructure projects. Industry analysts say the agreement aligns with Nigeria’s broader gas expansion strategy, which seeks to utilise the country’s vast proven gas reserves to drive industrialisation, reduce reliance on petrol and diesel, and promote cleaner energy alternatives. The MoU comes amid ongoing efforts by the federal government and key industry players to scale up domestic gas utilisation, including long-term supply arrangements with Nigeria LNG Limited and increased investments in gas processing and transmission infrastructure. While the agreement does not immediately translate into binding investment commitments, it is expected to pave the way for feasibility studies, detailed project planning, and eventual final investment decisions.
