The project is the outcome of two separate studies conducted by Chevron and BG, and Shell, which proposed to NNPC the development of their respective greenfield LNG projects in the Olokola area, due to its natural deepwater berth and other technical reasons. The projects' target shipment dates are 2009 and 2010 respectively.
In view of the proposed timing and location of the two independent projects, NNPC identified the opportunity for significant synergy and cost savings to be achieved by merging the two projects into one.
Consequently, the following integration model was selected:
It is worthy of note that the Olokola LNG has respected the policy directive of President Olusegun Obasanjo that all LNG projects must incorporate sufficient power generation for export into the national grid in order to boost power supply.
The Federal Government is very committed to this and other gas projects not only as a way of increasing the country's revenue base, but also to reduce environmental hazards occasioned by gas flaring for which Nigeria was known in the past.
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