The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have opened discussions on the revival of the long-delayed Olokola Liquefied Natural Gas (OKLNG) project, as the state develops a major coastal industrial corridor anchored by the proposed Gateway Deep Sea Port and Blue Marine Special Economic Zone.
The discussions took place in Abeokuta on Wednesday, September 30, when Governor Dapo Abiodun received an NNPC delegation led by Group Chief Financial Officer Dapo Segun and Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye. NNPC said it was reviewing the challenges that stalled OKLNG and exploring ways to resuscitate the project.
Key Highlights
- Ogun State and NNPC are discussing the revival of the Olokola LNG project.
- NNPC said it is reviewing the challenges that stalled the long-delayed project.
- The proposed OKLNG site requires about 1,728 hectares and 2.5 kilometres of Atlantic coastline, according to NNPC.
- The OKLNG revival is being discussed alongside Ogun’s emerging coastal industrial corridor.
- The Gateway Deep Sea Port and Blue Marine Special Economic Zone have an investment framework of more than $7 billion.
- The port and economic zone are projected to create more than 50,000 direct jobs when fully developed.
- Ogun signed MoUs with DP World for the port and 10,000-hectare Blue Marine Special Economic Zone in Paris last week.
- The current OKLNG discussions concern land, incentives and project requirements and do not yet amount to a final investment decision.
Ogun, NNPC Begin Talks on OKLNG Revival
The latest discussions mark a renewed effort to revive the Olokola LNG project, which has remained stalled for years.
NNPC Group CFO Dapo Segun said the company was undertaking a comprehensive review of the challenges that affected the project in the past, with the aim of identifying lasting solutions.
“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 for Gas, Power and New Energy, Olalekan Ogunleye, disclosed that the company would require approximately 1,728 hectares for the LNG plants, utilities, storage facilities and associated infrastructure.
Governor Abiodun said the state government was prepared to provide cooperation, incentives and guarantees required to support the project.
OKLNG Joins Ogun’s $7bn Coastal Development
The proposed LNG project is being discussed as part of a wider coastal development involving the Gateway Deep Sea Port and the Ogun State Blue Marine Special Economic Zone.
Ogun State and global ports and logistics company DP World signed MoUs in Paris last week for the development of the port and the 10,000-hectare economic zone.
The projects are expected to attract more than $7 billion in initial investment and generate more than 50,000 direct jobs when fully developed.
The $7 billion figure, however, relates to the proposed deep sea port and Blue Marine Special Economic Zone. It does not represent the current investment value of the OKLNG project.
Read also:
- Ogun Deep Sea Port: FG Targets Lagos Port Decongestion As DP World Signs $7bn Deal
- Nigeria’s CNG Transport Promise Faces Nationwide Reach Challenge as October 1 Target Begins
- Repair State Refineries to Cut Petrol Prices to ₦435–₦687, Agbon Tells Government
- Nigeria Records $3.5bn Gas Projects as Output Rises to 7.5 Bcf/d
Gateway Deep Sea Port Planned for Ogun Waterside
The proposed Gateway Deep Sea Port at Ogun Waterside is planned to have a four-kilometre berth and an 18-metre draft.
According to the project framework, the port is intended to handle larger vessels, decongest the Lagos port corridor and reduce costs and delays associated with imports and exports.
The adjoining Blue Marine Special Economic Zone is expected to support manufacturing, processing, logistics and export-oriented industries.
President Bola Tinubu, who witnessed the DP World MoU signing in Paris, said the integrated development could strengthen Nigeria’s maritime trade, manufacturing and export capacity.
How OKLNG Fits Into the Coastal Corridor
The revival of OKLNG would add an energy component to the emerging maritime and industrial corridor.
The proposed development is expected, if realised, to connect port infrastructure with industrial production and energy supply along Ogun’s coastline.
The wider corridor is also expected to link with other strategic infrastructure, including the proposed Nigerian Navy Operating Base and Dockyard and the Ogun section of the Lagos-Calabar Coastal Highway.
The concept is to create an integrated environment where the port handles cargo, the economic zone supports manufacturing and processing, and the LNG project provides an additional energy infrastructure component. NNPC has previously signalled interest in reviving OKLNG as part of broader gas monetisation efforts (NNPC statement on OKLNG revival).
Why Olokola LNG Has Been Delayed
The Olokola LNG project dates back to the mid-2000s and was originally conceived as a major LNG export development.
The project faced delays and changes in its ownership and investment structure, eventually becoming dormant.
The latest discussions therefore represent a renewed attempt to determine whether the project can be revived and under what commercial and technical framework.
NNPC’s current review is expected to examine the challenges that previously prevented the project from progressing and identify possible solutions.
$7bn Port Project Still at Development Stage
Despite the scale of the investment figures associated with the coastal corridor, the projects remain at different stages of development.
The Gateway Deep Sea Port and Blue Marine Special Economic Zone are backed by recently signed MoUs, while the OKLNG discussions are focused on requirements including land and incentives.
Governor Abiodun has separately said construction of the Gateway Deep Sea Port is expected to commence in November.
The OKLNG project would still require further commercial arrangements, technical assessments, financing, gas supply arrangements and other approvals before construction could begin.
Ogun Targets Integrated Maritime and Industrial Hub
The emerging coastal development reflects Ogun State’s broader effort to expand its industrial and maritime economy.
The proposed combination of a deep sea port, special economic zone and LNG infrastructure could create an integrated platform for logistics, manufacturing, energy and exports if the projects progress as planned.
For now, however, the NNPC-Ogun discussions represent a renewed effort to revive OKLNG rather than a completed investment decision. For more updates on this and other stories, follow us on X.
Related: Nigeria Domestic Gas Supply Crosses 2 Billion Cubic Feet Daily as FG Targets Power, Industry Growth
