NIPCO Gas Limited has unveiled plans to develop a Floating Liquefied Natural Gas (FLNG) project in Nigeria valued at over $3 billion.
The Managing Director of NIPCO Gas, Nagendra Verma, disclosed this on Thursday during a press briefing in Abuja.
Verma said the project will mark NIPCO’s entry into the Liquefied Natural Gas (LNG) sector and reaffirms the company’s commitment to monetising Nigeria’s huge gas resources.
According to him, the proposed facility is designed to produce about 3 million tonnes per annum (MMTPA) of LNG, though the final capacity will depend on feasibility studies, regulatory approvals, project economics and a Final Investment Decision (FID).
He explained that the development will comprise an FLNG facility together with associated marine and export infrastructure, and will have the capacity to serve both the international market and Nigeria’s growing domestic LNG demand.
On location, Verma said NIPCO is considering two strategic sites – the Escravos area of Delta State and the Akwa Ibom region. He noted the final site will be chosen after the ongoing feasibility study, based on access to upstream gas resources, ease of LNG processing, marine transportation and market access.
“This proposed development is expected to represent a significant investment currently estimated in excess of $3bn,” Verma said.
He added that NIPCO has been evaluating the project for the past six to nine months and is currently carrying out preliminary technical, commercial and feasibility assessments, including technology options, financing structures and commercial models, to ensure the project is technically robust and commercially viable.
The briefing was also attended by NIPCO Group Chairman, Chief Bestman Anekwe, Group Executive Director, Alhaji Abdulkadir Aminu, and Company Secretary, Paul Chukwuma Obi, SAN.
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