NIPCO Group, one of Nigeria’s leading integrated energy and infrastructure groups with over 22 years of operations with unblemished records, has announced that it has been evaluating a proposed Floating LNG initiative over the past nine months and is currently undertaking preliminary technical, commercial and feasibility assessments ahead of a final investment decision.
The Managing Director and Chief Executive Officer of NIPCO Gas Ltd, Nagendra Verma, a , who announced this in Abuja, said the proposed FLNG project represents a strategic expansion into LNG and marks the Group’s planned entry into the LNG sector, reinforcing its long-term commitment to the development and monetisation of Nigeria’s abundant natural gas resources .
The meeting had in attendance the Chaman , NIPCO, Chief Bestman Anekwe,; Group Executive Director ( GED ) Alhaji Abdulkadir Aminu and Company Secretaries, Paul Chukwuma Obi , SAN
The proposed development, he noted is expected to represent a significant investment currently estimated in excess of US$3 billion.
Verma said the proposed project is envisaged to be located either in the Escravos region of Delta State or in the Akwa Ibom region, strategically positioned to facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets, with final location to be determined subsequent to the ongoing feasibility study .
He stated that the project presently envisaged to have an LNG production capacity of approximately 3 million tonnes per annum, subject to outcome of ongoing studies, project economics, regulatory approvals and final investment decisions
According the project comprising an FLNG facility along with associated marine and export infrastructure with potential to serve both international LNG markets and growing domestic LNG demand.
Giving details on project development status, Verma explained that the ongoing work includes evaluation of upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics requirements, project economics and financing structure, environmental and regulatory requirements, engineering, procurement, construction and commissioning strategy and potential strategic and technical partnerships
He added that the Group expects to complete the feasibility in the next few months following which project configuration, investment requirements, development schedule and implementation structure will be further defined .
The MD emphasized that proposed capacity, investment value, configuration and timeline remain subject to completion of feasibility and technical studies, commercial evaluation, regulatory approvals, financing arrangements and final investment decision.