The Ogun State Government and the Nigerian National Petroleum Company Limited (NNPC) have reopened discussions on reviving the long-abandoned Olokola Liquefied Natural Gas (OKLNG) project in Ogun Waterside Local Government Area, adding a major energy component to the state's emerging coastal economic corridor.

The talks, held on Wednesday at the Governor's Office in Abeokuta, come barely a week after the state signed Memoranda of Understanding with global ports and logistics operator DP World for the Gateway Deep Sea Port and the 10,000-hectare Ogun State Blue Marine Special Economic Zone.

Under the proposal, NNPC indicated that approximately 1,728 hectares of land and 2.5 kilometres of Atlantic coastline would be required for the development of LNG plants, utilities, storage facilities, and associated marine infrastructure. The site would accommodate up to three LNG jetties.

NNPC Group Chief Financial Officer Adedapo Segun said the company was reviewing the challenges that stalled the project in the past to find lasting solutions. "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," Segun said.

Governor Dapo Abiodun described the renewed interest in OKLNG as a significant step toward positioning Ogun as a leading 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 noted that the LNG facility, which has been on the drawing board for over three decades, could serve as a vital energy source for industries within the coastal economic corridor and help meet the energy needs of the broader South-West region. "They have come to discuss the LNG plant originally designed as OKLNG, which is intended to be located on our coastline. Now, they are bringing the project back to life," he said.

Abiodun said discussions centred on land acquisition, incentives, and other requirements needed to facilitate the project's launch, with the state government committing to providing the necessary cooperation and guarantees. "They will pay for the land in the Economic Zone, and we will provide all the cooperation that this project requires," he assured.

The governor cited the example of the NNPC facility in Bonny, Rivers State, which employs about 14,000 people, to illustrate the potential employment impact of the Ogun facility. He added that the plant could supply gas to industries within the economic zone as well as to businesses and communities across Ogun and the wider South-West.

The Olokola LNG project was initiated in 2005 as a four-train, 22 million tonnes per annum facility between Ogun and Ondo States. A Memorandum of Understanding was signed in 2005 and an investors' agreement in 2007, with an initial Final Investment Decision also taken that year.

However, the project stalled after international partners including BG Group, Shell, and Chevron exited due to concerns about Nigeria's business environment, leaving NNPC as the sole investor. The Government later approved the divestment of 10 per cent of NNPC's participating interest in OK LNG in favour of Ogun State.

The renewed push for OKLNG enhances the energy dimension of the coastal investment corridor being developed around Ogun Waterside. Under the emerging development framework, the Gateway Deep Sea Port will provide maritime access for transporting raw materials, equipment, and finished products, while the Blue Marine Special Economic Zone will serve as the industrial and logistics platform. The LNG project is expected to provide the energy component to support industries across the corridor.

The development comes as Nigeria intensifies efforts to expand domestic gas utilisation and LNG export capacity, with the Federal Government identifying OK LNG as part of a broader strategic corridor linking maritime infrastructure, industry, energy, and trade during the Paris signing ceremony with DP World.

Decision or project mobilisation was announced, the resumption of talks signals renewed momentum for a project that has remained dormant for nearly two decades.

For Ogun State, the convergence of the deep seaport, marine economic zone, and LNG project could transform Ogun Waterside into an integrated hub for energy, manufacturing, maritime trade, and logistics — provided the commercial, regulatory, and financing hurdles that stalled the project in the past can be overcome.