The Shell Global Solutions International, SGSI, a world leader in LNG technology, marketing and investment consultancy, has confirmed Olokola Liquefied Natural Gas, OKLNG, as a sound project.

The company said the OKLNG also has good fundamentals capable of taking advantage of world LNG market opportunities in year 2018, but only if it proceeds rapidly to the implementation stage.

The Group General Manager, Group Public Affairs Department of the Nigerian National Petroleum Corporation, NNPC, Dr Levi Ajuonuma, however, explained that everything was being done to get the project on stream in keeping with the President Jonathan administration’s aspiration of turning Nigeria into a regional hub for gas.

He said the SGSI came up with this verdict after an in depth strategy review on how best to progress the project into implementation.

Ajuonuma said that the SGSI verdict is a vote of confidence on the project against the backdrop of the withdrawal of its smallest shareholder, the BG Group, from the project.

Explaining BG’s withdrawal from the OKLNG project, he said it did not come as a surprise considering that BG had been engaging NNPC on disposing of its upstream assets in the country.

“BG’s withdrawal is consistent with earlier engagements it has had with NNPC, and it will not in any way affect the project negatively as other shareholders will either exercise their right to take up the shares or allow any of the numerous investors angling to get on board to buy the shares,” he clarified.

He listed some of the companies willing to come on board the project to include Centrica, LNG Japan, and Mittal Group.

The OKLNG project was established in 2005, with NNPC as the major shareholder with 46.75% shareholding, Shell and Chevron 19.5% apiece, and the BG Group 14.25%.