ABUJA — NIPCO Group is planning to invest more than $3 billion in a floating liquefied natural gas (FLNG) project with an estimated production capacity of three million tonnes per annum (MMTPA), as the company moves to expand Nigeria’s gas monetisation and LNG footprint.
The proposed project, which would be NIPCO’s entry into the LNG business, is being considered for locations around Escravos in Delta State and the Akwa Ibom region, Managing Director of NIPCO Gas Ltd, Nagendra Verma, disclosed on Thursday in Abuja.
Verma said the project remains subject to the outcome of feasibility studies, regulatory approvals and a final investment decision (FID).
The proposed development is expected to combine an FLNG facility with associated marine, shipping and export infrastructure, potentially supplying both international LNG markets and Nigeria’s expanding domestic gas market.
“The proposed development is expected to represent a significant investment currently estimated in excess of $3bn,” Verma said.
He explained that the final location would be determined after the ongoing feasibility study, with NIPCO assessing sites based on access to upstream gas resources, LNG processing requirements, marine transportation and proximity to domestic and international markets.
NIPCO evaluates gas supply, technology and financing
According to Verma, NIPCO has been evaluating the project for between six and nine months and is currently undertaking preliminary technical, commercial and feasibility assessments.
The company is examining several development concepts, FLNG technology options, financing structures and commercial models before committing to the project.
The assessment covers upstream gas reserves and supply, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG opportunities, shipping and logistics, project economics and financing.
The company is also assessing the infrastructure required to move LNG efficiently between the proposed facility, export markets and potential domestic customers.
The planned investment comes as Nigeria seeks to increase the monetisation of its large natural gas resources, expand LNG exports and make more gas available for domestic industries and power generation.
NIPCO targets broader gas value chain
Verma said the FLNG project would build on NIPCO Group’s existing investments across Nigeria’s energy infrastructure value chain.
The group has interests in downstream oil and gas, natural gas distribution, compressed natural gas (CNG), liquefied petroleum gas (LPG), propane, pipeline infrastructure, logistics, fuel retail and hospitality.
He said NIPCO has invested approximately $2 billion in Nigeria’s oil and gas sector, covering pipeline infrastructure, CNG facilities, fuel retail outlets, PMS and AGO infrastructure, LPG and propane facilities, as well as logistics and distribution networks.
The company said the proposed FLNG development would deepen its participation in the upstream-to-downstream gas value chain while potentially creating jobs, supporting industrial activity and strengthening Nigeria’s position in the international LNG market.
NIPCO Group Chairman, Chief Bestman Anekwe, led other senior executives, including Group Executive Director, Corporate Services, Alhaji Abdulkadir Aminu, and Company Secretary, Paul Chukwuma Obi, SAN, at the briefing in Abuja.