NIPCO Targets Over $3bn Investment in LNG Project
NIPCO Group has announced plans to develop a more than three billion-dollar Floating Liquefied Natural Gas (FLNG) project to boost gas monetisation and supply.
The Managing Director of NIPCO Gas Ltd., Mr Nagendra Verma, disclosed this while briefing newsmen on its plans to establish the FLNG project on Thursday in Abuja.
Verma said the proposed project would mark NIPCO Group’s entry into the Liquefied Natural Gas sector and reinforce its long-term commitment to the development.
According to him, the initiative will 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 three billion dollars; the final investment requirement will be determined after feasibility studies, detailed engineering and commercial structuring.
“The proposed floating LNG facility may be located in the Escravos area of Delta or Akwa Ibom region.
“The final location will be determined after completion of the ongoing feasibility studies. The proposed location will provide access to upstream gas resources, LNG processing, and marine transportation.
“The project will also facilitate access to international and domestic LNG markets. NIPCO has evaluated the proposed project over the past six to nine months,” he said.
The managing director noted that the company was currently undertaking 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.
He said the proposed development would comprise an FLNG facility and associated marine and export infrastructure.
Verma said the project could serve both international LNG markets and Nigeria’s growing domestic LNG demand, adding that the project was envisaged to have an LNG production capacity of about three million tonnes annually.
He, 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 also determine the project’s implementation.
According to him, NIPCO is evaluating 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,” he added.
Verma said the plan would strengthen the group’s vertical integration across the gas value chain, adding that 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.
He said NIPCO operated a nationwide distribution network covering AGO, PMS, LPG, propane, PNG and CNG.
The managing director added that the network was supported by storage, logistics, transportation and retail infrastructure, while noting that the group operates about 30 CNG stations nationwide.
Mr Bestman Anekwe, a Chief and Chairman of NIPCO Group, said that the group believed that successful development of additional LNG capacity would support gas monetisation, industrial growth, energy security, foreign exchange generation and employment creation.
“It will leverage its existing relationships with NNPC and NNGM to secure feed gas, while forming strategic partnerships with international technology providers,” he said.
Anekwe said the NIPCO would continue to engage relevant Nigerian authorities, regulatory agencies, upstream and midstream partners, technology providers, financial institutions and other stakeholders as the project progresses.
He said that the company was one of Nigeria’s leading integrated energy and infrastructure groups, with investments across oil and gas distribution, CNG, LPG, propane and pipeline infrastructure.
Speaking, Mr Paul Obi, a Chief and Principal Partner at NIPCO, said the investments also covered logistics, retail and hospitality, supporting the company’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. #NIPCO Targets Over $3bn Investment in LNG Project # NLNG Urges Global Gas Producers to Cut Methane Emissions
