Marine LNG infrastructure developer Golar LNG has signed a project development agreement (PDA) with the state-owned Nigerian National Petroleum Corporation (NNPC) for the deployment of an FLNG facility offshore Niger Delta.
With a capacity of 400-500 million standard cubic feet per day (MMscf/d), the facility will produce LNG, LPG and condensate. The companies are eyeing the end of 2024 to achieve a final investment decision (FID), with first gas production expected by 2027.
The Golar LNG-led FLNG facility will monetize proven gas reserves within shallow water acreage in Nigeria and falls under a broader national agenda to monetize the country’s offshore natural gas resources.
According to the NNPC, the facility aligns closely with Nigerian President Bola Ahmed Tinubu’s mandate to leverage Nigerian gas for sustained economic growth and is a major milestone in strengthening commercialization through FLNG infrastructure.
The FLNG project represents just one of the many key developments underway in Nigeria. In May 2024, Nigeria inaugurated three new gas projects – the expanded AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3-km ANOH to Obiafu-Obrikom-Oben Custody Transfer Metering Station Gas Pipeline.
Once operational, these projects will collectively supply 500 MMscf/d to the domestic market.
Additionally, the development of the Nigeria-Morocco Gas Pipeline is progressing, with feasibility studies for the first section – which connects Morocco to Mauritania and Senegal – nearing completion. The $25 billion project anticipates FID in 2025.
Meanwhile, in 2023, the NNPC signed a Heads of Terms agreement with Nigerian oil and gas company UTM Offshore for the development of the country’s first indigenous FLNG project.
In March 2024, the companies announced that the project was advancing to the Engineering, Procurement, Construction, Installation and Commissioning phase. Energy major Shell has also unveiled plans to invest up to $1 billion over the next ten years to develop natural gas in Nigeria, drawing on a high level of global interest in the country’s gas market potential.
“With over 200 trillion cubic feet of proven gas reserves – the largest in Africa – Nigeria is well-positioned to become a global hub for sustainable energy. The launch of the FLNG project by the NNPC and Golar LNG marks a crucial step towards bolstering gas commercialization in the country, with the project set to unlock a new wave of economic opportunities, job creation and infrastructure development.
“The AEC commends the efforts of Golar LNG to strengthen Africa’s natural gas infrastructure and looks forward to many more fruitful collaborations among African nations,” said NJ Ayuk, Executive Chairman of the African Energy Chamber .
Source link : https://www.oedigital.com/news/514426-nnpc-inks-flng-deal-with-golar-lng-to-boost-gas-developments-in-nigeria
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Publish date : 2024-06-12 07:39:57
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