Ogun State and the Nigerian National Petroleum Company Limited (NNPC) have started talks to revive the Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside. This project has faced many delays but now adds a major energy aspect to the new $7 billion maritime and industrial project along Ogun's coastline.
This news comes just a week after the Ogun State Government signed agreements with DP World. This global ports and logistics operator is set to develop the Gateway Deep Sea Port and a 10,000-hectare Ogun State Blue Marine Special Economic Zone.
The agreements with DP World were signed in Paris with President Bola Ahmed Tinubu present. The deals are expected to bring in over $7 billion in initial investments and create more than 50,000 direct jobs. The Gateway Deep Sea Port will have a four-kilometre berth and an 18-metre draft. The economic zone will support manufacturing, processing, logistics, and export-focused industries.
During a meeting with NNPC officials in Abeokuta on Wednesday, Governor Dapo Abiodun said that the renewed interest in the LNG project would make Ogun a bigger industrial and energy center.
"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.
He mentioned that the LNG facility has been in planning for over 30 years and could provide a strong energy base for industries in the coastal economic corridor. It would also help meet the energy needs of the wider South-West region.
He highlighted the importance of reviving the project, especially after the agreement with DP World. Abiodun believes that the port, marine economy, industrial zone, and LNG project could create a united ecosystem for energy, manufacturing, maritime trade, and logistics.
"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," the Governor stated.
According to Abiodun, talks with NNPC included land acquisition, incentives, and other needs to get the project started. He assured that the state government would provide all the necessary support 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," he explained.
The governor mentioned that the project could create significant jobs and other economic benefits. He referenced the NNPC facility in Bonny, Rivers State, which employs about 14,000 people.
Abiodun added that the Ogun facility could supply gas to industries in the economic zone and to businesses and communities across Ogun and the wider South-West.
The renewed interest in OKLNG adds an essential energy touch to the coastal investment plans being developed around Ogun Waterside. The Federal Government had identified the OK LNG project at the Paris signing ceremony as part of a broader strategic corridor connecting maritime infrastructure, industry, energy, and trade.
Under this new development plan, the Gateway Deep Sea Port will offer maritime access for transporting raw materials, equipment, and finished products. The Blue Marine Special Economic Zone will serve as the industrial and logistics platform. The LNG project aims to boost the energy supply needed for gas-based industries and other businesses.
President Tinubu described the link between the port and the economic zone as an industrial ecosystem. He noted that this corridor would connect with the OK LNG project and other key infrastructure.
Abiodun said that DP World’s global experience in developing ports and economic zones would be critical for the coastal development. The company runs major port and economic zone facilities worldwide.
He explained that the deep sea port is being developed through a Public-Private Partnership, where private investors will fund it, and the Federal Government will act as guarantor.
Regarding the LNG project, NNPC Group Chief Financial Officer, Mr. Adedapo Segun, said they are reviewing the past challenges that stalled the project. Their goal is to find lasting solutions and revive it.
"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, Mr. Lekan Ogunleye, shared that the company would need about 1,728 hectares for the LNG plants, utilities, storage, and other infrastructure.
He added that the project will also need around 2.5 kilometers of dedicated Atlantic frontage for marine traffic and safety for up to three LNG jetties.
Ogunleye congratulated the people of Ogun State on the proposed project. He said its success would significantly impact the state's economy.
For Ogun, the progress on the OKLNG project and the DP World-supported port and Blue Marine Special Economic Zone shows the development of related infrastructure in the same coastal area. This will link energy supply with maritime access, industrial production, logistics, and export markets.
This development also adds to the broader infrastructure network planned for the area. This includes the Ogun section of the Lagos-Calabar Coastal Highway. The Presidency noted that this highway would connect the port, economic zone, Lagos, Nigeria's hinterland, and wider African markets.
The Ogun Waterside corridor aims to do more than just develop a port or LNG facility. The projects aim to create a combined platform for energy, maritime trade, manufacturing, logistics, and international trade.
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