NIPCO Group plans to develop a Floating Liquefied Natural Gas project in Nigeria, with an estimated investment at $3 billion.
Managing Director of NIPCO Gas, Nagendra Verma, said the proposed project could produce approximately three million tonnes of LNG annually, subject to feasibility studies, regulatory approvals and a final investment decision.
Verma said the project would mark NIPCO’s entry into the Liquefied Natural Gas sector. He said the company was considering locations in the Escravos area of Delta and the Akwa Ibom region.
He said the project would include an FLNG facility, marine infrastructure and export facilities.
The development could serve both international LNG markets and Nigeria’s growing domestic demand.
“The proposed development is expected to represent a significant investment currently estimated in excess of $3bn,” Verma said.
He said NIPCO would determine the final location after completing its ongoing feasibility study.
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“We are looking at strategic locations that will facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets,” he said.
Verma said NIPCO had evaluated the proposed FLNG project for the past six to nine months. He said the company was conducting preliminary technical, commercial and feasibility assessments.
“We are considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project,” Verma said.
He said the proposed development remained subject to technical studies, project economics, regulatory approvals and a final investment decision.
Verma said NIPCO was also assessing the shipping and logistics infrastructure required to support LNG exports and domestic supply.
He said the assessment covered upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics, project economics and financing.
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