The Nigerian National Petroleum Company Limited (NNPC) has partnered with Golar LNG to advance Nigeria’s natural gas monetization efforts through the development of a floating liquefied natural gas (FLNG) facility offshore in the Niger Delta.
Representing NNPC at the signing were Umar Ajiya, Chief Financial Officer; Olalekan Ogunleye, Executive Vice President of Gas Power & New Energy; and Mrs. Oritsemeyiwa Eyesan, Executive Vice President of Upstream. Golar LNG was represented by CEO Karl Fredrik Staubo.
The agreement outlines plans to utilize 400-500 million standard cubic feet of gas per day to produce LNG, LPG, and condensate, with an expected final investment decision by Q4 2024 and first gas production by 2027. Golar LNG is recognized for its expertise in LNG infrastructure, including floating liquefaction vessels.
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Vision
This FLNG project aligns with President Bola Tinubu’s vision of leveraging Nigeria’s gas assets for economic growth. It is part of broader national efforts to commercialize offshore natural gas and industrialize the country. The project will play a crucial role in Nigeria’s “Decade of Gas” initiative, which seeks to position gas as a catalyst for industrial development. This initiative is supported by the Petroleum Industry Act of 2021 and other policies aimed at encouraging foreign investment and enhancing the domestic and regional gas value chain.
The African Energy Chamber (AEC) has praised the NNPC and Golar LNG for this development, viewing it as instrumental in scaling up gas commercialization in Nigeria. The project is expected to generate economic opportunities, create jobs, and foster infrastructure development. Additionally, the NNPC is advancing other gas projects, including the Nigeria-Morocco Gas Pipeline and partnerships with companies like UTM Offshore and Shell, further boosting the country’s energy sector.
