NIPCO plans $3bn FLNG project in Nigeria

NIPCO Gas Ltd. has announced plans for a $3 billion Floating Liquefied Natural Gas (FLNG) project in Nigeria, according to a press conference on Thursday. The project would have an estimated LNG production capacity of three million tonnes per annum, contingent on feasibility studies, regulatory approvals, and a final investment decision.

The proposed development is being considered for locations in the Escravos area of Delta State and the Akwa Ibom region. This initiative would mark NIPCO's entry into the LNG sector and aim to serve both the international LNG market and Nigeria's growing domestic LNG demand. The project is expected to require significant investment and would involve an FLNG facility alongside marine and export infrastructure.

NIPCO is currently evaluating various development concepts, technology solutions, financing structures, and commercial options to establish a technically robust and commercially sustainable project. The Group's entry into LNG is part of its broader commitment to Nigeria's natural gas development, with the company already investing approximately $2 billion in the country's oil and gas sector.

The proposed project could potentially reduce LNG prices through indigenous construction, minimizing exposure to imports and exchange-rate fluctuations.