NIPCO PLANS OVER $3BN FLOATING LNG PROJECT

NIPCO Group is planning to develop a Floating Liquefied Natural Gas project in Nigeria estimated to require more than $3bn in investment, as the company seeks to expand its participation in the country’s gas value chain.

The Managing Director of NIPCO Gas, Nagendra Verma, disclosed this at a press briefing in Abuja. He said the proposed project is expected to have an LNG production capacity of about three million tonnes per annum.

Verma said NIPCO had been evaluating the project for six to nine months and was conducting preliminary technical, commercial and feasibility studies.

The proposed facility is being considered for locations around Escravos in Delta State and the Akwa Ibom region. The final location will depend on the outcome of the feasibility studies.

The project is expected to include the floating LNG facility, marine infrastructure and export facilities, with the potential to supply both international markets and Nigeria’s growing domestic LNG market.

NIPCO is also assessing upstream gas supply, LNG technology, shipping and logistics, financing structures and project economics.

The company said it was exploring a strategic partnership with the Nigerian National Petroleum Company for the project and would engage technology providers, financial institutions and other industry stakeholders.

However, NIPCO stressed that the proposed investment, production capacity and development timeline remain subject to feasibility studies, regulatory approvals and a final investment decision.

The project would mark NIPCO’s entry into LNG production and build on its existing investments in pipelines, CNG, LPG, fuel retailing and other areas of Nigeria’s oil and gas industry.