Nigeria’s gas monetisation drive received a major boost yesterday as NIPCO Group, one of Nigeria’s leading integrated energy and infrastructure groups, announced plans to develop a Floating Liquefied Natural Gas facility in Nigeria valued at over US$3 billion.
The Managing Director and Chief Executive Officer of NIPCO Gas Ltd, Nagendra Verma, who disclosed this at a newsmen briefing in Abuja, said the proposed project marks NIPCO’s strategic entry into the LNG sector after 22 years of unblemished operations and reinforces its long-term commitment to the development and monetisation of Nigeria’s abundant natural gas resources.
The briefing was jointly addressed by the topmost hierarchy of the Group led by Chairman, Chief Bestman Anekwe alongside, Group Executive Director, Corporate Services , Alhaji Abdulkadir Aminu and company secretary , Paul Chukwuma Obi , SAN
According to him, the proposed FLNG is envisaged to be located either in the Escravos region of Delta State or in the Akwa Ibom region, strategically positioned to facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets, with final location to be determined subsequent to the ongoing feasibility study.
He explained that the project, which has been under evaluation over the past six to nine months, is presently envisaged to have an LNG production capacity of approximately 3 million tonnes per annum, subject to the outcome of feasibility and technical studies, project economics, regulatory approvals and final investment decisions,
The project, Verma affirmed would comprise an FLNG facility along with associated marine and export infrastructure with potential to serve both international LNG markets and the growing domestic LNG demand in Nigeria.
The MD said the proposed FLNG project represents a natural extension of NIPCO’s existing capabilities and its strategy of participating across the broader natural gas value chain, noting that Nigeria possesses significant natural gas resources and the development of additional gas monetisation infrastructure i
According to him, it is expected to play an important role in supporting the country’s energy transition, industrial development, domestic gas availability and export potential.
He added that through the proposed project, NIPCO intends to contribute to the development of additional LNG production capacity while creating a platform for monetising otherwise underutilized or stranded gas resources and creating opportunities for increased participation of Nigerian companies and professionals across engineering, fabrication, marine services, logistics and operations.
On upstream integration and technical capability, Verma disclosed that NIPCO’s desire to move into the upstream oil and gas business would be a perfect fit for its vertical integration with its current gas portfolio.
He stressed that the Group intends to leverage its existing technical and commercial capabilities together with strategic partnerships and to work with experienced international technology providers, engineering companies, contractors, financial institutions and other strategic partners as may be required for successful development.
Verma equally informed that the organisation would be building on its significant investment and extensive experience across Nigeria’s oil and gas value chain even as NIPCO is currently exploring a strategic partnership with NNPC for the development of the proposed FLNG project.
He noted that the Group’s experience in managing large-scale infrastructure projects, combined with its financial capacity, established operational platform and access to diverse funding sources, provides a strong foundation for an integrated LNG project, having already invested approximately US$2 billion in Nigeria’s oil and gas sector.
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