{"id":13858,"date":"2024-06-12T00:37:13","date_gmt":"2024-06-12T00:37:13","guid":{"rendered":"https:\/\/sotnews.agency\/?p=13858"},"modified":"2024-06-12T00:37:13","modified_gmt":"2024-06-12T00:37:13","slug":"nigerian-national-petroleum-corporation-nnpc-signs-floating-liquefied-natural-gas-flng-deal-with-golar-lng-bolstering-gas-commercialization-in-nigeria","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=13858","title":{"rendered":"Nigerian National Petroleum Corporation (NNPC) Signs Floating Liquefied Natural Gas (FLNG) Deal with Golar LNG, Bolstering Gas Commercialization in Nigeria"},"content":{"rendered":"
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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.<\/p>\n

Representing the voice of the African energy sector, the African Energy Chamber (AEC) commends both the NNPC and Golar LNG for this industry milestone. The AEC believes that projects such as the FLNG facility will play an instrumental part in scaling up gas commercialization in Nigeria, laying the foundation for a new era of industrialization across the continent.<\/p>\n

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\u2019s offshore natural gas resources. According to the NNPC, the facility aligns closely with Nigerian President Bola Ahmed Tinubu\u2019s mandate to leverage Nigerian gas for sustained economic growth and is a major milestone in strengthening commercialization through FLNG infrastructure.<\/p>\n

The FLNG project represents just one of the many key developments underway in Nigeria. In May 2024, Nigeria inaugurated three new gas projects \u2013 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 \u2013 which connects Morocco to Mauritania and Senegal \u2013 nearing completion. The $25-billion project anticipates FID in 2025.<\/p>\n

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\u2019s 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\u2019s gas market potential.<\/p>\n

Nigeria\u2019s robust pipeline of gas projects is supported by broader policy implementation, which aims to incentivize foreign investment and support project development. In 2021, the country launched its \u201cDecade of Gas\u201d initiative, which served to position gas as a catalyst for industrial growth in Nigeria. The initiative has been supported by additional policy reforms including Nigeria\u2019s Petroleum Industry Act (2021) \u2013 which created a licensing framework for the natural gas industry, including provisions related to gas pricing, distribution, flaring and tax incentives; the Nigerian Energy Transition Plan; and the Nigerian Gas Flaring Commercialization Program. These policies place gas as a central engine for economic growth and promote investment across the domestic and regional gas value chain.<\/p>\n

\u201cWith over 200 trillion cubic feet of proven gas reserves \u2013 the largest in Africa \u2013 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\u2019s natural gas infrastructure and looks forward to many more fruitful collaborations among African nations,\u201d states NJ Ayuk, Executive Chairman of the AEC.\u00a0<\/p>\n

The deal comes ahead of the Africa Energy Week (AEW): Invest in African Energy conference \u2013 scheduled for November 4-8 in Cape Town \u2013 and represents a critical step towards advancing gas monetization in Nigeria. This year\u2019s edition will host a dedicated Invest in Nigeria Energies<\/em> country spotlight, providing unparalleled insight into the country\u2019s energy sector opportunities. Projects such as the recently-launched FLNG facility \u2013 spearheaded by Golar LNG \u2013 will be showcased, with companies unpacking the wealth of opportunities available in the Nigerian market.\u00a0<\/p>\n

Distributed by APO Group on behalf of African Energy Chamber.<\/p>\n

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com<\/a> for more information about this exciting event. <\/em><\/p>

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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… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-13858","post","type-post","status-publish","format-standard","hentry","category-world"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/13858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13858"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/13858\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}