NNPC Signs MoU with Chinese Firms to Advance Nigeria’s Gas Infrastructure

Peter Uzoho

The Nigerian National Petroleum Company Limited (NNPC) has signed a tripartite Memorandum of Understanding (MoU) with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd. (PCCS), establishing a framework for structured collaboration across key segments of Nigeria’s natural gas value chain.

Managing Director of PCCS, Tim Tian, disclosed this in a statement issued yesterday.

He said the MoU was signed at NNPC’s headquarters in Abuja in the presence of its Group Chief Executive Officer, Bayo Ojulari; the Executive Vice President for Gas, Power & New Energy, Mr. Olalekan Ogunleye; and the General Manager of NNPC Gas & Power Investment Services, Mr. Ibrahim Hamza.

The agreement, according to the statement, covers liquefied natural gas development, spanning flare-gas-to-liquefied natural gas (LNG), floating LNG, and onshore LNG initiatives, alongside gas-fired power generation and industrial facilities utilising domestic gas feedstock.

The statement added that the MoU serves as the primary vehicle to align international technical expertise with Nigeria’s domestic energy priorities, providing a formalised governance structure to transition identified opportunities from technical feasibility through to commercial operations.

“Our role is to combine proven modular engineering with locally grounded commercial structures that make projects investible and deliverable”, the PCCS MD said, adding that fast-tracking scalable gas infrastructure will be critical to converting resources into jobs, reliable power and industrial growth.

Tiam said the signing was followed by an extensive programme of engagement by the China Gas and PCCS delegation across Nigeria’s energy sector.

He said discussions with Heirs Energies Limited examined downstream compressed natural gas (CNG) and LNG opportunities, including a 15 million standard cubic feet per day (15MMSCFD) supply discussion and project delivery considerations, while separate meetings with refinery leadership focused on the integration of gas supply into refining and industrial operations.

The statement noted further that the delegation also held discussions with the Ministry of Finance Incorporated (MOFI) regarding financing structures relevant to large-scale gas infrastructure development.

Alongside these meetings, PCCS said the delegation conducted site inspections at operational facilities, including CNG mother stations, the NGML-NIPCO refuelling station at the Port of Lagos, and logistics bases in Shagamu operating CNG and LNG-powered heavy-duty fleets.

The statement added the visits provided direct operational insight into compression systems, daily throughput levels, fleet utilisation, and transport-linked gas demand.

“With the framework now in place, the parties will proceed with technical evaluations and structured commercial discussions in line with the agreed scope”, PCCS said.

The company said it had a proven track record in developing and operating refineries, LNG/CNG plants, and gas-to-power projects across Africa and Southeast Asia, facilitating the bridge between international technical standards and localised project delivery.