What originally began as two separately proposed LNG projects, both slated for the Olokola Free Trade Zone in Nigeria, has since been combined into the Olokola LNG project. Being developed as a joint effort of Nigerian National Petroleum Corp. (NNPC), Chevron, Shell and BG Group, the Olokola LNG project construction started in April 2007.
The Olokola LNG project will consist of a marine berth for offloading LNG, along with four LNG trains each with a 5.5 mtpa capacity. The first phase of construction completes two of the trains, and the second completes the other two -- resulting in a 22 mtpa capacity. Located on the coast between the Nigerian states of Ogun and Ondo, east of Lagos, the Olokola LNG project will commercialize Nigerian gas, providing resources to Nigeria and exporting LNG to the world, as well as reduce flaring.
The participating companies signed an MOU concerning the Olokola LNG project in April 2005. In March 2007, the companies signed a Shareholders' Agreement (SHA), covering the development of the launch project and future expansions.
Under these agreements, the facilities fall under joint ownership, except for individual trains. Individual train owners are responsible for buying their own gas and selling their own LNG. There will be a single technology and single operator of the facility, and 50% of the gas that is being liquefied must be provided from the Niger Delta.
In August 2006, Chevron awarded FEED work to a joint venture between Foster Wheeler and National Engineering & Technical Company (NETCO) for the gas wellhead platforms and pipelines portion of Chevron's Olokola Gas Supply Project. The offshore terminal will collect gas from offshore fields and transport up to 2.3 Bcf/d of natural gas to the Olokola LNG plant.
The first shipment of LNG from Olokola LNG is expected in 2009 (Phase 1). Phase 2 of the project is scheduled to conclude in 2010.