Ask Nigeria Header Logo

NNPC, Golar LNG sign new FLNG agreement

Photo of author

By Usman Oladimeji

LNG, LPG, and condensate will be produced in the new facility.

In partnership with the Nigerian National Petroleum Corporation (NNPC), Golar LNG, a developer of marine Infrastructure for Natural Gas is set to establish a Floating Liquified Natural Gas (FLNG) facility in the Niger Delta. This facility will have a daily capacity of 400-500 million standard cubic feet and will produce LNG, Liquefied Petroleum Gas (LPG), and condensate. With gas production anticipated by 2027, companies are making significant strides and setting sights on the conclusion of 2024 for a final Investment decision (FID). The African Energy Chamber (AEC) applauds the NNPC and Golar LNG for their contribution to the energy sector in Africa.

According to the AEC, these projects are crucial in increasing gas commercialization in Nigeria and setting the stage for a new era of industrial growth across the continent. It was revealed that the facility is focused on converting established gas reserves in shallow waters off Nigeria, aligning with the country’s larger goal of capitalizing on its offshore natural gas reserves. As per the NNPC, the facility is in line with Nigerian President Bola Ahmed Tinubu’s goal of utilizing Nigerian gas for continuous Economic Development and marks a significant achievement in enhancing commercialization via FLNG infrastructure.

This project is poised to open up fresh economic prospects.

The collaboration between NNPC and Golar LNG on the FLNG project represents a significant advancement in enhancing the commercialization of gas in the nation. This project is poised to open up a range of fresh economic prospects, generate employment, and facilitate infrastructure growth. NJ Ayuk, the Executive Chairman of the AEC, praises Golar LNG for their initiatives in enhancing Africa’s natural gas infrastructure. He anticipates a successful partnership among African nations in the future. This agreement is a significant move towards advancing gas monetization in Nigeria and is timely as it precedes the Africa Energy Week (AEW) conference in Cape Town from November 4-8.

Moreover, the upcoming event will shine a spotlight on investment opportunities in Nigeria’s energy sector, offering unique insights to attendees. Featured projects, like the newly launched FLNG facility led by Golar LNG, will be highlighted, showcasing the abundance of opportunities in the Nigerian market. This initiative is just one example of the numerous exciting developments taking place in Nigeria. Nigeria officially launched three brand new gas projects in May 2024, including the upgraded AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3-km ANOH to Obiafu-Obrikom-Oben Custody Transfer Metering Station Gas Pipeline. Upon completion, these projects are expected to provide a total of 500 MMscf/d to meet the demands of the local market.

Nigeria’s pipeline of gas projects is being bolstered by policies.

Progress is also being made on the Nigeria-Morocco Gas Pipeline project, with feasibility studies for the initial segment linking Morocco to Mauritania and Senegal almost finished. Estimated at $25 billion, this project is expected to reach a Final Investment Decision (FID) by 2025. A separate agreement was signed in 2023 between NNPC and Nigerian company UTM Offshore for the development of Nigeria’s first indigenous Floating Liquefied Natural Gas (FLNG) project. The project was given the green light to move forward to the Engineering, Procurement, Construction, Installation, and Commissioning phase in March 2024.

Shell has also announced its commitment to investing $1 billion in the next decade towards the development of natural gas in Nigeria. This investment comes as a response to the growing international interest in Nigeria’s gas market prospects. The country’s pipeline of gas projects is being bolstered by comprehensive policy measures aimed at attracting foreign Investors and facilitating project advancement. The year 2021 also marked the start of Nigeria’s ambitious Gas Decade program, aimed at leveraging the power of gas to drive industrial expansion within the country.

Related Article: Delta, NNPCL, UTM Offshore partner on FLNG

Push for change in the country has been bolstered by new policy measures such as the Nigeria Petroleum Industry Act of 2021. This act established guidelines for licensing in the natural gas sector, covering aspects like pricing, distribution, flaring, and Tax benefits. Other initiatives like the Nigerian Energy Transition Plan and the Nigerian Gas Flaring Commercialization Program have also played a role in driving progress. By prioritizing gas as a key driver of economic development, these policies aim to encourage investment and advancement throughout both the local and international gas industries. Nigeria boasts the continent’s largest proven gas reserves, exceeding 200 trillion cubic feet, positioning the country as a potential worldwide leader in Renewable Energy production.


Disclaimer

The content on AskNigeria.com is given for general information only and does not constitute a professional opinion, and users should seek their own legal/professional advice. There is data available online that lists details, facts and further information not listed in this post, please complete your own investigation into these matters and reach your own conclusion. Images included with this information are not real, they are AI generated and are used for decorative purposes only. Our images are not depicting actual events unless otherwise specified. AskNigeria.com accepts no responsibility for losses from any person acting or refraining from acting as a result of content contained in this website and/or other websites which may be linked to this website.