NNPC Limited Signs MoU With Chinese Firms To Expand Gas Infrastructure
By ESTHER McWILLIS-IKHIDE
NNPC, China Gas, PCCS Seal Tripartite Deal
NNPC Limited has entered into a tripartite Memorandum of Understanding (MoU) with China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd (PCCS) to advance Nigeria’s natural gas infrastructure and deepen collaboration across the gas value chain.
The agreement was signed at NNPC’s headquarters in Abuja in the presence of the company’s Group Chief Executive Officer, Bayo Ojulari; Executive Vice President for Gas, Power and New Energy, Olalekan Ogunleye; and General Manager of Gas & Power Investment Services, Ibrahim Hamza.
Managing Director of PCCS, Tim Tian, disclosed the development in a statement issued yesterday.
Focus on LNG, Power and Industrial Gas
According to the statement, the MoU establishes a framework for structured cooperation in several key areas, including flare-gas-to-liquefied natural gas (LNG) projects, floating LNG facilities, and onshore LNG developments.
The partnership will also explore gas-fired power generation and the supply of domestic gas feedstock to industrial facilities, reflecting Nigeria’s push to monetise its vast gas reserves while strengthening energy security.
The agreement is designed to align international technical expertise with Nigeria’s domestic energy priorities, providing a formal governance structure that can move identified projects from feasibility studies to commercial execution.
“Our role is to combine proven modular engineering with locally grounded commercial structures that make projects investible and deliverable,” Tian said, stressing that scalable gas infrastructure would be critical to generating jobs, improving power reliability and driving industrial growth.
Engagement Across the Energy Sector
Following the signing, the Chinese delegation embarked on a series of engagements across Nigeria’s energy landscape.
Discussions with Heirs Energies Limited centred on downstream compressed natural gas (CNG) and LNG opportunities, including a potential 15 million standard cubic feet per day supply arrangement and project delivery considerations.
Separate meetings were also held with refinery operators to examine how gas supply could be integrated into refining and industrial operations.
The delegation further met with the Ministry of Finance Incorporated (MOFI) to explore financing frameworks suitable for large-scale gas infrastructure.
Operational Site Inspections
As part of the visit, the team conducted inspections of 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.
According to PCCS, the visits provided first-hand insight into compression systems, daily throughput volumes, fleet utilisation rates and transport-driven gas demand.
With the MoU framework now established, the parties are expected to proceed with detailed technical evaluations and structured commercial negotiations.
PCCS noted that it has experience developing and operating refineries, LNG and CNG plants, and gas-to-power projects across Africa and Southeast Asia, positioning it to bridge international standards with local project delivery.
