Marine LNG infrastructure developer Golar LNG has signed a Project Development Agreement (PDA) with the state-owned Nigerian National Petroleum Corporation (NNPC) for the deployment of an FLNG facility offshore Niger Delta. With a capacity of 400-500 million standard cubic feet per day (MMscf/d), the facility will produce LNG, LPG, and condensate. The companies are aiming for a final investment decision (FID) by the end of 2024, with first gas production expected by 2027.
The African Energy Chamber (AEC) commends both the NNPC and Golar LNG for this industry milestone, as it represents a significant step in scaling up gas commercialization in Nigeria, ultimately laying the groundwork for industrialization across the continent.
The FLNG facility led by Golar LNG will help monetize proven gas reserves in shallow water acreage in Nigeria and aligns with the national agenda to monetize the country’s offshore natural gas resources. This project is closely linked to Nigerian President Bola Ahmed Tinubu’s mandate to leverage Nigerian gas for sustained economic growth, marking a major milestone in commercialization through FLNG infrastructure.
In addition to the FLNG project, Nigeria has inaugurated three new gas projects in May 2024, expected to collectively supply 500 MMscf/d to the domestic market. The country is also progressing with the development of the Nigeria-Morocco Gas Pipeline, with FID anticipated in 2025.
In 2023, the NNPC signed a Heads of Terms agreement with UTM Offshore for the development of the country’s first indigenous FLNG project. Energy major Shell has announced plans to invest up to $1 billion over the next decade to develop natural gas in Nigeria, reflecting global interest in the country’s gas market potential.
Nigeria’s robust pipeline of gas projects is supported by policy reforms implemented to incentivize foreign investment and support project development, promoting gas as a central engine for economic growth.
The AEC recognizes Nigeria’s potential as a global hub for sustainable energy with its abundant gas reserves and commends the efforts to strengthen gas commercialization in the country. The launch of the FLNG project by the NNPC and Golar LNG is a significant step towards unlocking economic opportunities, job creation, and infrastructure development.
The deal precedes the Africa Energy Week (AEW): Invest in African Energy conference scheduled for November 4-8 in Cape Town, highlighting the progress in gas monetization in Nigeria. The event will feature a dedicated spotlight on the Nigerian energy sector, showcasing opportunities in the market.
Distributed by APO Group on behalf of African Energy Chamber.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers, and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.