- Advertisement -spot_img
28.2 C
Lagos
HomeBusinessNNPC Ltd. advances floating LNG project with Golar LNG

NNPC Ltd. advances floating LNG project with Golar LNG

- Advertisement -spot_img

In a significant stride towards monetizing Nigeria’s extensive natural gas resources, NNPC Limited has signed a Project Development Agreement (PDA) with Golar LNG for the establishment of a Floating Liquefied Natural Gas (FLNG) facility off the coast of the Niger Delta.

The landmark deal, finalized on June 10, 2024, is poised to enhance Nigeria’s gas commercialization efforts, aligning with President Bola Ahmed Tinubu’s vision of leveraging the nation’s gas assets for economic growth.

The signing ceremony saw high-level participation from NNPC Limited, including Chief Financial Officer Umar Ajiya, Executive Vice President of Gas Power & New Energy Olalekan Ogunleye, and Executive Vice President of Upstream Oritsemeyiwa Eyesan.

Representing Golar LNG was CEO Karl Fredrik Staubo, underscoring the project’s importance to both entities.

The PDA represents a crucial milestone in Nigeria’s journey towards effective gas utilization. It outlines a comprehensive plan to exploit approximately 400-500 million standard cubic feet per day (mmscf/d) of gas, leading to the production of LNG, LPG, and condensate.

This initiative is expected to transform Nigeria’s shallow water gas reserves into commercially viable resources.

READ ALSO: Nigerian banks see 22.5% surge in combined assets in Q1 2024

NNPC Limited and Golar LNG have committed to achieving a Final Investment Decision (FID) by the end of the fourth quarter of 2024, with the aim of commencing gas production by 2027.

This timeline reflects the partners’ dedication to swiftly bringing the project to fruition, ensuring that Nigeria capitalizes on its vast natural gas potential.

Golar LNG Limited, a prominent independent owner and operator of LNG infrastructure, brings extensive expertise to the project.

The company specializes in LNG carriers, floating storage and regasification units (FSRUs), and FLNG vessels, making it a valuable partner for NNPC Limited in this ambitious venture.

The deployment of the FLNG facility is expected to significantly boost Nigeria’s energy sector, contributing to the country’s economic development by creating jobs, enhancing energy security, and generating revenue.

This project not only aligns with national economic goals but also reinforces Nigeria’s position in the global LNG market.

As the project progresses, both NNPC Limited and Golar LNG are focused on maintaining a collaborative approach to ensure the successful implementation of this groundbreaking initiative, which promises to reshape Nigeria’s energy landscape and drive long-term economic prosperity.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img