NIPCO plans $3bn FLNG project in Nigeria

NIPCO Gas Ltd., has announced plans to develop a Floating Liquefied Natural Gas project in Nigeria, with the proposed development estimated to require more than $3bn in investment. This statement was made at a press conference on Thursday by the Managing Director of NIPCO Gas Ltd., Nagendra Verma, who said the proposed project would have an envisaged LNG production capacity of approximately three million tonnes per annum, subject to the outcome of feasibility studies, regulatory approvals and a final investment decision. Verma said the project, which would mark NIPCO’s entry into the Liquefied Natural Gas sector, was being considered for locations in the Escravos area of Delta State and the Akwa Ibom region. “This proposed development is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with the potential to serve both the international LNG market and growing domestic LNG demand in Nigeria. The proposed project is presently envisaged to produce LNG, approximately 3 million L per annum, 3 million metric tons per annum. The proposed development is expected to represent a significant investment currently estimated in excess of $3bn. “The final location shall be determined subsequent to the ongoing feasibility study. We are looking at strategic locations that will facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets,” he said. According to him, NIPCO had been evaluating the proposed FLNG project for the past six to nine months and was currently undertaking preliminary technical, commercial and feasibility assessments. “We are considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project,” Verma said. He said the proposed development would comprise an FLNG facility alongside associated marine and export infrastructure, with the potential to serve international LNG markets as well as Nigeria’s growing domestic gas demand.See more Punch stories on Google.Add Punch on Google “The project is presently envisaged to have an LNG production capacity of approximately three million tonnes per annum. “However, this remains subject to the outcome of the ongoing feasibility and technical studies, project economics, regulatory approvals and final investment decisions,” he said. Verma said NIPCO was also evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply. Delta, labour set up panel to probe deputy director’s death Police arrest one, track two aides over Delta director’s death Delta NLC shuts secretariat over deputy director’s death The Managing Director said the ongoing assessment covers upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics requirements, project economics and financing structure. NIPCO also disclosed that it was exploring a strategic partnership with the Nigerian National Petroleum Company for the development of the proposed FLNG project. He added that NIPCO would continue to engage with government authorities, regulatory agencies, upstream and midstream partners, technology providers, financial institutions and other stakeholders as the project progresses. Verma said the Group’s entry into LNG was part of its broader commitment to Nigeria’s natural gas development. “The proposed FLNG initiative forms part of NIPCO Group’s broader strategy to deepen its participation in Nigeria’s natural gas value chain and support the country’s transition towards greater utilisation of cleaner fuels.” The proposed FLNG project is expected to build on NIPCO’s existing investments in Nigeria’s energy sector. The Group said it had invested approximately $2bn in Nigeria’s oil and gas sector, covering pipeline infrastructure, CNG facilities, fuel retail outlets, AGO and PMS infrastructure, LPG and propane facilities, logistics and distribution networks, among others. Responding to a question on whether the project could reduce LNG prices, the Group Executive Director, Corporate Services, Abdulkadir Aminu, said indigenous construction would reduce exposure to imports and exchange-rate fluctuations. “If indigenous construction is done, then there is no impact on the importation or the fluctuation of the dollar exchange rate and no duty and anything,” Aminu said. “Obviously, when any product is being manufactured locally, the pricing is expected to be low compared to the imported price or imported product.” Aminu said the project is also intended to increase the use of locally produced gas. “The aim of doing the project is to get relief to the masses. First is the maximum utilisation of the indigenous gas, more and more monetisation, deepening of the gas utilisation, and reach to the masses,” he said. He said increased local production could affect prices by reducing some costs associated with imports. “If you produce this thing locally, the cost associated with freight from overseas compared to when it is imported from overseas, the associated cost of freight, insurance, clearing charges, landing costs, all those things you are dealing with, it will definitely impact the price of the product in general,” Aminu concluded. Damilola Aina Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.

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