China Gas Holdings Limited and Peiyang Chemical Singapore PTE Ltd. (PCCS), have entered into a tripartite agreement with the Nigerian National Petroleum Company Limited (NNPC Ltd.) following a Memorandum of Understanding recently signed to establish a strategic alliance across key segments of Nigeria’s natural gas value chain.
According to a media release by the Managing Director of PCCS, Tim Tian, the MoU encompasses liquefied natural gas development, spanning flare-gas-to-liquefied natural gas (LNG), floating LNG, and onshore LNG initiatives, alongside gas-fired power generation and industrial facilities utilising domestic gas feedstock, in furtherance of President Bola Ahmed Tinubu’s Decade of Gas agenda.
“Our role is to combine proven modular engineering with locally grounded commercial structures that make projects investible and deliverable, noting fast-tracking scalable gas infrastructure will be critical to converting resources into jobs, reliable power, and industrial growth,” PCCS MD, Tim Tian, said.
“The MoU will serve as the primary vehicle to align international technical expertise with Nigeria’s domestic energy priorities, providing a formalised governance structure to transition identified opportunities from technical feasibility through to commercial operations,” He added.
Wider Consultations for Enabling Opportunities
Tiam said that the successful signing of the Mou was a result of an extensive programme of engagement by the China Gas and PCCS delegation across Nigeria’s energy sector and China, noting that the ministerial visit led by the Nigerian Minister of State for Petroleum Gas, Honorable Dr. Ekperikpe Ekpo, in China where he met with top officials of China Gas and PCCS in China was to explore strategic collaboration and investment opportunities in Nigeria’s gas sector.
PCCS, currently in a strategic alliance with Heirs Energies Limited, to unlock the downstream compressed natural gas (CNG) and LNG opportunities available, including a 15 million standard cubic feet per day (15MMSCFD) supply discussion and project delivery considerations are ongoing, as separate meetings with refinery leadership are focused on the integration of gas supply into refining and industrial operations.
PCCS delegation had also held a high level discussions with the Ministry of Finance Incorporated (MOFI) regarding financing structures relevant to large-scale gas infrastructure development. Alongside these meetings, Tiam disclosed that the delegation has conducted site inspections at 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.
“The visits provided direct operational insight into compression systems, daily throughput levels, fleet utilisation, and transport-linked gas demand. With the framework now in place, the parties will proceed with technical evaluations and structured commercial discussions in line with the agreed scope”, Tiam said.
PCCS Global Competence and Proven Track Record
PCCS’s competence and capacity in handling complex projects and critical infrastructure across the global energy value chain are a testament to the company’s proven track record in developing and operating refineries, LNG/CNG plants, and gas-to-power projects across Africa and Southeast Asia, facilitating the bridge between international technical standards and localised project delivery.
In Nigeria, PCCS has, through its Nigerian subsidiary PCCN, executed the Nigeria Edo Refinery, with Phases one and two having design capacities of 1,000BPD and 5,000BPD respectively. Officially put into production in 2020, the project design meets customer requirements, with a maximum diesel yield of 67% and an average of 55%.
Nigeria Koko Refinery, Phase one 3,000BPD, Phase two 30,000BPD, is another project being undertaken by PCCS. The refinery has two phases. In the first phase, Naphtha, Diesel, Low Pour Fuel Oil, LPG, Propane & Paint Solvent will be produced, with revenues exceeding 2.0 billion USD annually. The OSBL and jetty have been completed, with an estimated full project completion and commissioning date of June 2025.
Nigeria LPG Gas Processing Plant, Capacity: Phase one 12MMSCFD, Phase two 25MMSCFD. Our designs and products meet customers’ requirements.
The MoU was signed at NNPC’s headquarters in Abuja in the presence of its Group Chief Executive Officer, Bayo Ojulari; the Executive Vice President for Gas, Power & New Energy, Mr. Olalekan Ogunleye; and the General Manager of NNPC Gas & Power Investment Services, Mr. Ibrahim Hamza.
