News Investigators/ NIPCO Group plans to develop a more than $3 billion Floating Liquefied Natural Gas (FLNG) project to boost gas monetisation and supply.
NIPCO Gas Ltd. Managing Director, Nagendra Verma, disclosed this while briefing newsmen on the project on Thursday in Abuja.
Mr Verma said the project would mark NIPCO Group’s entry into the LNG sector and reinforce its long-term commitment to gas development.
He said the initiative would strengthen the company’s commitment to developing and monetising Nigeria’s abundant natural gas resources.
“The project is expected to require an investment estimated at more than $3 billion.
“The final investment requirement will be determined after feasibility studies, detailed engineering and commercial structuring,” Verma said
He said the proposed floating LNG facility could be located in the Escravos area of Delta or the Akwa Ibom region.
“The final location will be determined after completion of the ongoing feasibility studies,” he said.
Mr Verma said the proposed locations would provide access to upstream gas resources, LNG processing facilities and marine transportation.
He said the project would also facilitate access to international and domestic LNG markets, adding that NIPCO had evaluated it for six to nine months.
The managing director said NIPCO was conducting preliminary assessments covering development concepts, technology solutions and financing structures.
He said the assessment would also examine commercial options to ensure a technically sound and commercially sustainable project.
Mr Verma said the proposed development would comprise an FLNG facility and associated marine and export infrastructure.
He said the project could serve international LNG markets and Nigeria’s growing domestic LNG demand.
“The project is envisaged to have an LNG production capacity of about three million tonnes annually,” he said.
Mr Verma, however, said the proposed capacity remained subject to feasibility studies, technical assessments and project economics.
He added that regulatory approvals and a final investment decision would determine the project’s implementation.
According to him, NIPCO is evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply.
“NIPCO’s planned expansion into the upstream oil and gas business would complement its existing gas portfolio,” Verma said.
He said the expansion would strengthen the group’s vertical integration across the gas value chain.
Mr Verma said NIPCO had established a strong presence across Nigeria’s downstream oil and gas sector.
He said the group had expertise in developing, financing, constructing and operating energy infrastructure.
According to him, NIPCO operates a nationwide distribution network covering Automotive Gas Oil (AGO), Premium Motor Spirit (PMS), LPG, propane, Piped Natural Gas (PNG) and Compressed Natural Gas (CNG).
He said the network was supported by storage, logistics, transportation and retail infrastructure, adding that NIPCO operates about 30 CNG stations nationwide.
Bestman Anekwe, Chairman of NIPCO Group, said additional LNG capacity would support gas monetisation, industrial growth and energy security.
Mr Anekwe said it would also contribute to foreign exchange generation and employment creation.
“It will leverage its existing relationships with Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and NNGM to secure feed gas,” he said.
He said NIPCO would also form strategic partnerships with international technology providers to advance the project.
Mr Anekwe said NIPCO would continue engaging Nigerian authorities, regulators, upstream and midstream partners, technology providers and financial institutions.
He said the group was one of Nigeria’s leading integrated energy and infrastructure companies, with investments across oil and gas distribution, CNG, LPG, propane and pipeline infrastructure.
Paul Obi, Principal Partner, NIPCO, said the group’s investments also covered logistics, retail and hospitality.
Mr Obi said these investments supported NIPCO’s role in Nigeria’s evolving energy sector.
“The group supports Nigeria’s energy transition by developing domestic gas infrastructure, promoting CNG and LPG adoption, strengthening energy access and contributing to economic growth,” he said.
NAN
