The long-delayed Olokola Liquefied Natural Gas (OKLNG) project may be heading for a fresh start as the Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) reopen discussions on the multi-billion-dollar gas project planned for Ogun Waterside.
The renewed push comes against the backdrop of Ogun State’s emerging coastal development corridor, following the signing of Memoranda of Understanding between the state government and global ports and logistics operator, 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 generate over 50,000 direct jobs.
The Gateway Deep Sea Port is planned with a four-kilometre berth and an 18-metre draft, while the adjoining economic zone is expected to accommodate manufacturing, processing, logistics and export-oriented businesses.
The revival of OKLNG now introduces a major energy component into the emerging coastal investment architecture.
Receiving a delegation from NNPC in Abeokuta on Wednesday, Governor Dapo Abiodun said the renewed discussions could reposition Ogun as a major energy and industrial hub.
«“Last Wednesday, we signed an MoU on the Deep Sea Port, and today we have the NNPC team here discussing the activation of the LNG plant,” Abiodun said.»
According to the governor, the LNG project had remained on the drawing board for more than three decades and could now become a critical energy source for industries within the emerging coastal corridor and the wider South-West.
«“They have come to discuss with us the LNG plant that was originally designed and called OKLNG, which was meant to be situated on our coastline. Now, they have brought the project back to life,” he said.»
1,728 Hectares Required for LNG Project
The NNPC delegation provided further details on the scale of the proposed project.
NNPC Executive Vice President, Gas, Power and New Energy, Lekan Ogunleye, said approximately 1,728 hectares would be required for the LNG plants, utilities, storage facilities and associated infrastructure.
He added that the project would require about 2.5 kilometres of dedicated Atlantic frontage to accommodate marine operations and up to three LNG jetties.
NNPC Group Chief Financial Officer, Adedapo Segun, said the company was conducting a comprehensive review of the issues that stalled the project in the past.
«“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.»
Land, Incentives Top Discussion
Abiodun said discussions between the state and NNPC were focused on land acquisition, incentives and other requirements necessary for the project to take off.
He said the state government was prepared to provide the necessary cooperation and guarantees.
«“They will pay for land in the Economic Zone, and we will be giving them all the cooperation that this project deserves. We will give them all the assistance and guarantees,” the governor said.»
Abiodun said the project could generate substantial employment and stimulate economic activity across Ogun and the wider South-West.
He cited the NNPC facility in Bonny, Rivers State, where he said about 14,000 people are employed, as an indication of the potential economic impact of a major gas-related development.
The governor said the proposed Ogun facility could supply gas to industries within the economic zone, as well as businesses and communities across the state and the wider South-West.
Port, LNG, Industrial Zone to Form Integrated Corridor
The emerging development framework places the OKLNG project alongside the Gateway Deep Sea Port and the Blue Marine Special Economic Zone.
Under the arrangement, the deep sea port would provide maritime access for raw materials, equipment and finished products; the economic zone would serve as a platform for manufacturing, processing and logistics; while the LNG project could provide a major energy source for gas-based industries and other businesses.
President Tinubu had described the integration of the port and economic zone as an industrial ecosystem, with the emerging corridor expected to connect with the OK LNG project and other strategic infrastructure.
The Ogun State Government has also highlighted the importance of DP World’s experience in developing ports and integrated economic zones around the world.
The deep sea port is being developed under a Public-Private Partnership framework, with private investors expected to provide funding while the Federal Government serves as guarantor.
Lagos-Calabar Highway Adds Another Link
The coastal development is also expected to connect with the wider infrastructure network planned for the region, including the Ogun section of the Lagos-Calabar Coastal Highway.
The Presidency has identified the coastal highway as a critical transport link capable of connecting the port and economic zone with Lagos, the Nigerian hinterland and wider African markets.
If the projects progress as currently envisaged, Ogun Waterside could emerge as a major convergence point for gas, maritime transportation, manufacturing, logistics, industrial production and international trade.
For a project that has remained largely dormant for more than three decades, the latest engagement between Ogun and NNPC represents a renewed attempt to move OKLNG from the drawing board into implementation.
The bigger proposition, however, is no longer simply an LNG plant.
It is the creation of an interconnected coastal economic corridor in which energy feeds industry, the port facilitates trade, the economic zone attracts production and logistics, and transport infrastructure connects the entire ecosystem to domestic and international markets.
