$10bn Investment Puts Ogun, NNPC Partnership and Long-Delayed OGLNG Project at Centre of Emerging Coastal Economy
By Kayode Akinmade For more than three decades, the Olokola Liquefied Natural Gas project remained largely a promise on paper. Now, renewed discussions between the Ogun State Government and the
For decades, the Olokola Liquefied Natural Gas (OGLNG) project lay dormant as a mere promise. Recently, renewed dialogues between the Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have placed the stalled project at the forefront of a broader initiative to transform Ogun State's coastline into an energy, maritime, and industrial powerhouse.
These discussions transpired a week after the state government inked Memorandums of Understanding (MoUs) with global ports and logistics operator DP World for the development of a deep sea port and a 10,000-hectare Blue Marine Special Economic Zone. Together, these projects are anticipated to usher in an initial investment of $10 billion and generate over 50,000 direct employment opportunities.
The proposed deep sea port is envisioned to feature a four-kilometer berth and an 18-meter draft, while the adjoining economic zone is set to accommodate manufacturing, processing, logistics, and export-oriented industries. The rekindled OGLNG discussions inject a crucial energy dimension into this burgeoning coastal economic corridor, promising the emergence of an interconnected platform where energy, maritime transport, manufacturing, logistics, and international trade mutually reinforce one another.
Governor Dapo Abiodun received NNPC officials in Abeokuta on Wednesday, expressing optimism about the potential of the OGLNG project as a foundational energy source for the industries anticipated around the port and special economic zone. The Governor highlighted the project's capacity to address the energy requirements of businesses and communities across Ogun and the wider South-West.
He emphasized that the OGLNG project, originally designed for coastal location, has been revived, signifying a significant convergence of major investments around Ogun Waterside.
The ongoing dialogues between Ogun and NNPC focus on practical aspects for project revival, including land acquisition, incentives, and other requisite conditions. The state is prepared to cooperate and provide necessary guarantees. The Governor also underscored the employment potential of the project, drawing parallels with the Bonny facility in Rivers State, where approximately 14,000 individuals are employed.
Beyond direct employment, the proposed LNG facility could bolster a wider network of contractors, service providers, transport operators, manufacturers, and energy-intensive businesses. Its gas supply could significantly benefit industries within the economic zone and businesses across Ogun and the broader South-West.
NNPC Group CFO, Adedapo Segun, acknowledged the past hurdles that stalled OGLNG and stated the company's commitment to resolving these challenges for the project's renaissance. NNPC Executive Vice President, Gas, Power, and New Energy, Lekan Ogunleye, provided insights into the extensive land and marine requirements of the proposed development.
The project would necessitate about 1,728 hectares for LNG plants, utilities, storage facilities, and related infrastructure, along with 2.5 kilometers of Atlantic frontage for marine operations and safety requirements for up to three LNG jetties. These requirements underscore the magnitude of the proposed investment and the far-reaching implications of the extensive coastal development now envisioned for Ogun Waterside.
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