NIPCO Group is planning to develop a Floating Liquefied Natural Gas (FLNG) project in Nigeria with an estimated investment of more than $3 billion.
The proposed project, which would mark NIPCO’s entry into the liquefied natural gas sector, is expected to have an LNG production capacity of approximately three million metric tonnes per annum, subject to feasibility studies, regulatory approvals and a final investment decision.
The Managing Director of NIPCO Group, Nagendra Verma, disclosed the plans at a press conference on Thursday, saying the company was considering locations in the Escravos area of Delta State and the Akwa Ibom region.
Verma said the final location would be determined after the ongoing feasibility study, with the company assessing sites based on access to upstream gas resources, LNG processing, marine transportation and domestic and international markets.
The proposed development is expected to comprise an FLNG facility and associated marine and export infrastructure. NIPCO said the project could supply both the international LNG market and Nigeria’s growing domestic gas demand.
According to Verma, NIPCO has been evaluating the project for between six and nine months and is currently conducting preliminary technical, commercial and feasibility assessments.
The company is considering different development concepts, technology options, financing structures and commercial models as part of efforts to determine the project’s technical and commercial viability.
The ongoing assessment covers upstream gas supply and reserves, FLNG technology and configuration, production capacity, marine and export infrastructure, opportunities to supply LNG domestically, shipping and logistics, project economics and financing structure.
NIPCO said the proposed three-million-tonnes-per-year capacity remains subject to the outcome of the technical and feasibility studies, project economics, regulatory approvals and a final investment decision.
