Ogun, NNPC Move to Revive OKLNG as $7bn Coastal Development Gathers Momentum

ABEOKUTA — The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have commenced discussions on the revival of the long-delayed Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside.

The development adds a major energy component to the emerging coastal investment corridor anchored by the proposed Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.

The renewed discussions followed the signing of Memoranda of Understanding between Ogun State and global ports and logistics operator, DP World, for the development of the deep sea port and economic zone.

The agreements, signed in Paris in the presence of President Bola Ahmed Tinubu, are expected to attract more than $7 billion in initial investment and create over 50,000 direct jobs, according to the Ogun State Government.

Receiving NNPC officials in Abeokuta on Wednesday, Governor Dapo Abiodun said the revival of OKLNG would strengthen the state’s emergence as an industrial and energy hub.

«“Last Wednesday, we signed an MoU on the Deep Sea Port, and today we have the NNPC team here discussing the activation of the LNG plant,” Abiodun said.»

The Governor said the LNG project, which has been under consideration for more than three decades, could provide an important energy base for industries within the emerging coastal economic corridor and contribute to meeting energy demand across the South-West.

According to him, the discussions with NNPC focused on land acquisition, incentives and other requirements needed to facilitate the project.

«“They have come to discuss with us the LNG plant that was originally designed and called OKLNG, which was meant to be situated on our coastline. Now, they have brought the project back to life,” he said.»

Abiodun assured the NNPC delegation of the state government’s cooperation, adding that Ogun would provide the necessary assistance and guarantees to support the project.

He said the LNG facility could generate substantial employment and economic opportunities, while supplying gas to industries within the proposed economic zone and other businesses and communities across Ogun and the wider South-West.

NNPC Reviews Challenges

NNPC Group Chief Financial Officer, Mr Adedapo Segun, said the company was conducting a comprehensive review of the challenges that stalled the OKLNG project in the past.

Segun said the objective was to identify lasting solutions and develop a pathway for the resuscitation of the project.

«“We are here to engage with the government of Ogun State on the project we are looking to site along the coastline of the state,” he said.»

Also speaking, NNPC Executive Vice President, Gas, Power and New Energy, Mr Lekan Ogunleye, disclosed that approximately 1,728 hectares would be required for the LNG plants, utilities, storage facilities and associated infrastructure.

He added that the project would require about 2.5 kilometres of dedicated Atlantic frontage to support marine traffic and safety requirements for up to three LNG jetties.

Ogunleye described the proposed project as significant to the economic development of the state.

Coastal Economic Corridor

The proposed OKLNG project is expected to complement the Gateway Deep Sea Port and the Ogun State Blue Marine Special Economic Zone by providing an energy component to the emerging coastal industrial corridor.

The Gateway Deep Sea Port is planned with a four-kilometre berth and an 18-metre draft, while the adjoining economic zone is designed to accommodate manufacturing, processing, logistics and export-oriented businesses.

The broader development is also expected to connect with other strategic infrastructure, including the Ogun section of the Lagos-Calabar Coastal Highway.

The Presidency has described the integration of the port, economic zone and OKLNG project as part of a broader industrial ecosystem linking maritime infrastructure, energy, manufacturing, logistics and international trade.

With discussions on OKLNG now underway alongside the planned port and economic zone, Ogun Waterside is emerging as a major focus of proposed energy, maritime and industrial investment in the state.