The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have begun discussions on reviving the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside.
The renewed effort comes as a major maritime and industrial development valued at more than $7 billion takes shape along Ogun State’s coastline.
The development follows the recent signing of Memoranda of Understanding (MoUs) between the Ogun State Government and global ports and logistics company, DP World, for the development of the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.
The agreements, signed in Paris in the presence of President Bola Ahmed Tinubu, are expected to attract more than $7 billion in initial investment and create over 50,000 direct jobs. The proposed Gateway Deep Sea Port will feature a four-kilometre berth and an 18-metre draft, while the adjoining economic zone is planned to support manufacturing, processing, logistics and export-oriented businesses.
Ogun State Governor, Dapo Abiodun, disclosed the latest development after receiving senior NNPC officials in Abeokuta.
Abiodun said the renewed interest in the OKLNG project would strengthen the state’s plans to establish Ogun as a major industrial and energy hub.
He noted that the LNG project had remained on the drawing board for more than three decades but could now become an important component of the emerging coastal economic corridor.
According to the governor, the facility could provide an energy base for industries operating within the proposed economic zone while also helping to meet the energy requirements of businesses and communities across Ogun and the wider South-West.
Abiodun said discussions with NNPC were focused on issues including land acquisition, incentives and other requirements needed to move the project forward.
He also pledged the state government’s cooperation and support for the project.
The governor said the LNG development could generate significant employment and broader economic activity, pointing to the NNPC facility in Bonny, Rivers State, which he said employs about 14,000 people.
He added that gas from the proposed Ogun facility could serve industries within the economic zone as well as businesses and communities across the region.
OKLNG TO COMPLEMENT PORT AND INDUSTRIAL ZONE
The proposed LNG project is expected to become an important part of the wider development taking place around Ogun Waterside.
The emerging framework links the Gateway Deep Sea Port with the Blue Marine Special Economic Zone and the OKLNG project, creating a proposed corridor connecting energy, maritime transportation, manufacturing, logistics and international trade.
The deep sea port would provide access for the movement of raw materials, equipment and finished goods, while the economic zone would provide space for industrial and logistics activities.
The LNG project, if successfully revived, could provide additional energy infrastructure to support gas-based industries and other businesses operating within the corridor.
President Tinubu had previously described the integration of the port and economic zone as an industrial ecosystem and identified the OK LNG project as part of the broader infrastructure network planned for the area.
NNPC REVIEWS CHALLENGES THAT DELAYED PROJECT
NNPC Group Chief Financial Officer, Adedapo Segun, said the company was reviewing the challenges that prevented the OKLNG project from progressing in the past.
According to him, the objective is to identify lasting solutions and create the conditions required to revive the project.
“We are here to engage with the government of Ogun State on the project we are looking to site along the coastline of the state,” Segun said.
NNPC Executive Vice President, Gas, Power and New Energy, Lekan Ogunleye, disclosed that the proposed development would require approximately 1,728 hectares for the LNG plants, utilities, storage facilities and other associated infrastructure.
He added that about 2.5 kilometres of dedicated Atlantic frontage would also be required to accommodate marine traffic and safety requirements, including up to three LNG jetties.
$7BN GATEWAY PORT PROJECT
The renewed discussions around OKLNG come shortly after Ogun State and DP World reached agreements concerning the Gateway Deep Sea Port and the Ogun State Blue Marine Special Economic Zone.
The projects are expected to attract more than $7 billion in initial investment and create over 50,000 direct jobs.
The deep sea port is being developed under a Public-Private Partnership arrangement, with private investors expected to provide the funding while the Federal Government serves as guarantor.
The proposed economic zone is intended to support manufacturing, processing, logistics and export-oriented industries, providing an industrial base around the port.
COASTAL CORRIDOR TO CONNECT ENERGY, TRADE AND INDUSTRY
The development also forms part of a wider infrastructure plan for Ogun Waterside.
The Ogun section of the Lagos-Calabar Coastal Highway is expected to provide a major connection between the emerging port and economic zone, Lagos, the Nigerian hinterland and wider African markets.
Together, the proposed port, economic zone, LNG facility and supporting transport infrastructure are being developed around the same coastal corridor.
If implemented as planned, the projects would establish an interconnected platform for energy supply, maritime commerce, manufacturing, logistics and international trade in Ogun Waterside.
For the Ogun State Government and NNPC, the immediate focus is now on resolving the outstanding requirements for the OKLNG project and translating the renewed discussions into concrete steps toward its revival.
