Project Snapshot
Olokola LNG
Facility Type: LNG
Scope: New Construction
Owner: NNPC, 49.5%; Chevron, 18.5%; Shell, 18.5%; BG Group, 13.5%
Location: Lagos  Nigeria
Region: Africa
Modified:  September 10, 2008
Images:


Project description

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.

  Key Stats
Major units:
marine loading dock, four LNG liquefaction trains, natural gas unit
Products:
LNG, natural gas
Post-project processing capacity:
22 mtpa
Contractors:
JV between Foster Wheeler and NETCO, FEED for Olokola Gas Supply Project
  Related Articles
Investors Line Up for Nigerian LNG
Feb 14, 2008 - Upon assuming power, Nigerian president Umaru Yar'Adua announced that domestic gas needs would take priority over the growth of the gas export sector.
BG Group, NLNG Strike Supply Deal
Feb 12, 2007 - BG Group plc has signed a Sale and Purchase Agreement with Nigeria LNG (NLNG) for the acquisition of 2.25 million tonnes per annum (mtpa) of LNG for a 20-year term from the planned Train 7 project in Finima, Bonny Island, Nigeria.
Foster Wheeler Wins FEED Contract for Olokola
Aug 03, 2006 - Foster Wheeler Ltd. said that two subsidiaries in its Global Engineering and Construction Group have been awarded the front-end engineering design (FEED) by Chevron Nigeria Limited (CNL) for a portion of CNL's Olokola Gas Supply Project (OKGS).
Endesa, Metrogas to Buy Gas from Enap LNG Project
Apr 08, 2005 - Chilean generator Endesa Chile and natural gas distributor Metrogas have signed an agreement with state oil company Enap to be offtakers for the latter's proposed LNG re-gasification project.



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