NNPC Signs Major Offshore LNG Deal With North American Firm

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The Nigerian National Petroleum Corporation (NNPC) Limited has entered into a significant agreement with Golar LNG, a North American company, to establish a floating liquefied natural gas (FLNG) facility in the Niger Delta.

 

NNPC spokesperson Olufemi Soneye announced this development in a statement released on Monday in Abuja.

 

FLNG involves the process of liquefying natural gas at sea, rather than onshore, providing flexibility and efficiency in gas production.

 

Soneye explained that the Project Development Agreement (PDA) plans to use approximately 400-500 Million standard cubic feet per day (mmscf/d) of gas to produce LNG, liquefied petroleum gas (LPG), and condensate in Nigeria.

 

This agreement supports President Bola Tinubu’s agenda to commercialise Nigeria’s gas resources quickly, promoting economic growth for the nation.

 

“The PDA marks a significant step towards gas commercialisation by deploying an FLNG facility in Nigeria, aligning with President Bola Ahmed Tinubu’s commitment to harness Nigeria’s gas assets for national economic prosperity,” said Soneye.

 

The project aims to monetise vast proven gas reserves from Nigeria’s shallow water resources.

 

The PDA details a monetisation plan that will utilise 400-500 mmscf/d of gas to produce LNG, LPG, and condensate.

 

The final agreement between NNPC and Golar LNG is expected to be concluded before the end of the fourth quarter of this year.

 

A Final Investment Decision (FID), which indicates the commitment to fund and proceed with the project, is anticipated by the fourth quarter of 2024.

 

Following the FID, the first gas production is expected by 2027.

 

Golar LNG Limited is well-known for its LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and FLNG vessels.

 

Nigeria’s shift from oil to gas has been ongoing for decades, driven by the country’s larger gas reserves. Recent data shows Nigeria has 37 Billion barrels of crude oil reserves and approximately 202 Trillion cubic feet of gas reserves, with 139.4 Trillion cubic feet recoverable.

 

President Tinubu has furthered this transition by signing new executive orders and inaugurating three gas plants in Delta and Imo, aiming to increase gas production by 25 percent. Additionally, he has announced plans to move towards CNG-powered vehicles, reducing the country’s reliance on petrol.

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