The Nigerian National Petroleum Company Limited (NNPC) has entered a tripartite Memorandum of Understanding (MoU) with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd. (PCCS) to strengthen collaboration across Nigeria’s natural gas value chain.
Tim Tian, Managing Director of PCCS, announced that the MoU was signed at NNPC’s Abuja headquarters in the presence of NNPC Group CEO Bayo Ojulari, Executive VP for Gas, Power & New Energy Olalekan Ogunleye, and NNPC Gas & Power Investment Services GM Ibrahim Hamza.
The agreement focuses on the development of liquefied natural gas (LNG), including flare-gas-to-LNG, floating LNG, and onshore LNG projects. It also covers gas-fired power generation and industrial facilities that use domestic gas feedstock.
Tian explained that the MoU provides a formal framework to integrate international technical expertise with Nigeria’s energy priorities, enabling projects to progress from technical feasibility to commercial operations. He highlighted that fast-tracking scalable gas infrastructure is vital for creating jobs, ensuring reliable power supply, and fostering industrial growth.
Following the signing, the China Gas and PCCS delegation engaged widely across Nigeria’s energy sector. Discussions with Heirs Energies Limited explored downstream compressed natural gas (CNG) and LNG opportunities, including a potential 15 million standard cubic feet per day (15MMSCFD) supply arrangement. Separate meetings with refinery operators focused on integrating gas into refining and industrial processes.
The delegation also met with the Ministry of Finance Incorporated (MOFI) to review financing options for large-scale gas infrastructure. Site inspections were conducted at 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. These visits provided insights into compression systems, throughput levels, fleet utilisation, and transport-related gas demand.
With the framework now established, the parties will advance technical evaluations and structured commercial discussions according to the MoU’s scope. PCCS noted its extensive experience in developing and operating refineries, LNG/CNG plants, and gas-to-power projects across Africa and Southeast Asia, bridging international standards with localised project delivery.
