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BUA Group’s Ambitious LNG Project Set to Transform Nigeria’s Energy Sector

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Lagos, Nigeria – December 19, 2023 – In a transformative move set to reshape Nigeria’s energy landscape, BUA Group, one of Africa’s largest industrial conglomerates, has signed a groundbreaking agreement with CIMC ENRIC, a global leader in the energy equipment industry. The collaboration is aimed at establishing a 700-ton-per-day Liquefied Natural Gas (LNG) project in Nigeria, and it comes at a pivotal time as the nation pursues a decade of gas commitment.

The agreement, inked on Monday at the BUA headquarters in Lagos, signifies a significant step towards leveraging sustainable and cleaner energy sources. Abdul Samad Rabiu, Chairman of BUA Group, expressed his enthusiasm for the project, highlighting the company’s dedication to incorporating energy-efficient practices into its operations. The move aligns seamlessly with BUA’s short-to-long-term Environmental, Social, and Governance (ESG) commitments and broader sustainability initiatives.

Currently, BUA Group relies heavily on gas as a primary energy source, powering over 1,000MW captive power plants across its operations in Nigeria. The new mini LNG project is poised to play a pivotal role in enhancing the availability of cleaner energy throughout the year, supporting the company’s growing industrial power demands.

Nigeria, a significant player in the global energy market, experienced a surge in natural gas demand in 2022. According to Statista, the demand reached approximately 12.12 billion standard cubic meters, marking a notable increase from the previous year’s 10.11 billion standard cubic meters. The BUA-CIMC ENRIC partnership comes at a time when the nation’s LNG production capacity stands at 21.9 million tons per annum (Mtpa) with six trains, and there are projections for it to increase to 29.9Mtpa by 2030.

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Chairman Abdul Samad Rabiu, while addressing the collaboration, emphasized the positive outlook for the project and expressed his anticipation for a fruitful partnership with CIMC ENRIC. The venture is not just a strategic expansion for BUA Group but also represents a firm commitment to sustainable energy solutions across its diverse business operations.

As the BUA-CIMC ENRIC venture gains momentum, its impact on Nigeria’s energy sector is expected to be far-reaching. One of the most notable outcomes is the creation of job opportunities, a crucial development in a country where employment remains a pressing issue. The project’s alignment with the Nigerian government’s decade of gas commitment underscores a shared vision for a more sustainable and energy-efficient future for the nation.

The ambitious LNG project is not only a testament to BUA Group’s commitment to environmental stewardship but also a strategic move to diversify its portfolio. The collaboration with CIMC ENRIC, a global leader in the energy equipment industry, brings together expertise and innovation, laying the foundation for a project that is set to become a cornerstone of Nigeria’s energy infrastructure.

The new 700-ton-per-day Liquefied Natural Gas (LNG) project in Nigeria by BUA Group and CIMC ENRIC is poised to significantly ease unemployment in the country. The project’s construction and operational phases will generate a multitude of job opportunities across various skill levels, from engineering and logistics during construction to skilled and support roles once operational. The project’s impact is expected to extend beyond its immediate workforce, creating opportunities in related industries and services. In a nation struggling with unemployment challenges, this initiative stands as a beacon, not only contributing to Nigeria’s energy infrastructure but also actively addressing the critical issue of job creation.

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The BUA-CIMC ENRIC partnership signals a new era for Nigeria’s energy sector. The LNG project, with its significant capacity and commitment to sustainability, is poised to drive economic growth, create employment opportunities, and contribute to the nation’s broader vision for a greener and more resilient energy future. As construction commences, all eyes are on this transformative venture that holds the promise of reshaping Nigeria’s energy landscape for years to come.

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