Ogun State and the Nigerian National Petroleum Company Limited (NNPC) have initiated talks to revive the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside.
This marks a significant addition to the emerging $7 billion maritime and industrial development along the state’s coastline.
This development comes shortly after the state government signed a Memorandum of Understanding with global ports and logistics operator DP World for the creation of the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.
The agreements with DP World, signed in Paris in the presence of President Bola Ahmed Tinubu, are anticipated to attract over $7 billion in initial investment and create more than 50,000 direct jobs. The Gateway Deep Sea Port is planned to have a four-kilometre berth and an 18-metre draft, while the adjoining economic zone aims to support manufacturing, processing, logistics, and export-oriented industries.
During a meeting with NNPC officials in Abeokuta, Governor Dapo Abiodun expressed that the renewed interest in the LNG project would strengthen Ogun’s role as a significant industrial and energy 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 stated.
The governor emphasised that the proposed LNG facility, which has been in planning for over three decades, could serve as a vital energy source for industries within the emerging coastal economic corridor and help meet the energy needs of the broader South-West region.
He noted the significance of reviving the project right after the agreement with DP World, pointing out that the port, marine economy, industrial zone, and LNG project could collectively create an integrated ecosystem for energy, manufacturing, maritime trade, and logistics.
‘They have come to discuss the LNG plant originally designed as OKLNG, which is intended to be located on our coastline. Now, they are bringing the project back to life,’ the governor explained.
Abiodun shared that discussions with NNPC centred on land acquisition, incentives, and other requirements needed to facilitate the project’s launch, with the state government committing to providing the necessary cooperation and guarantees.
‘They will pay for the land in the Economic Zone, and we will provide all the cooperation that this project requires. We will offer them the assistance and guarantees they need,’ he assured.
The governor estimated that the project could generate substantial employment and positive economic effects, citing the example of the NNPC facility in Bonny, Rivers State, which employs about 14,000 people. He added that the Ogun facility could supply gas to industries within the economic zone as well as to businesses and communities across Ogun and the wider South-West.
The renewed push for OKLNG enhances the energy dimension of the coastal investment corridor being developed around Ogun Waterside. The Federal Government identified the OK LNG project as part of a broader strategic corridor linking maritime infrastructure, industry, energy, and trade during the Paris signing ceremony.
Under the emerging development framework, the Gateway Deep Sea Port will provide maritime access for transporting raw materials, equipment, and finished products, while the Blue Marine Special Economic Zone will serve as the industrial and logistics platform. The LNG project is expected to fortify the energy supply needed to support gas-based industries and other businesses.
President Tinubu highlighted the integration of the port with the economic zone as an industrial ecosystem, noting that the emerging corridor would connect with the OK LNG project and other strategic infrastructure.
Governor Abiodun acknowledged that DP World’s global experience in developing ports and integrated economic zones would be crucial for realising the coastal development, noting the company’s operation of major port and economic-zone facilities worldwide.
He explained that the deep-sea port is being developed under a Public-Private Partnership framework, where private investors provide the funding and the Federal Government acts as a guarantor.
Regarding the LNG project, NNPC Group Chief Financial Officer Mr Adedapo Segun stated that the company is conducting a comprehensive review of the challenges that previously hindered the project, aiming to find lasting solutions and revitalise it.
‘We are here to engage with the Ogun State government on the project we plan to site alongside the state’s coastline,’ Segun said.
Additionally, NNPC Executive Vice President for Gas, Power, and New Energy, Mr Lekan Ogunleye, revealed that approximately 1,728 hectares will be needed for the LNG plants, utilities, storage facilities, and associated infrastructure.