NIPCO Group, a household name with 22 years of unblemished operations in Nigeria’s energy sector, has formally declared its intention to enter the LNG business with a proposed Floating LNG project valued at over $3 billion.
The declaration was made on Thursday in Abuja by Nagendra Verma, Managing Director, NIPCO Gas Ltd , at a press conference that had the full weight of the company’s leadership in attendance – the Chairman, Chief Bestman Anekwe, Group Executive Director, Corporate Services, Alhaji Abdulkadir Aminu and Company Secretary, Paul Chukwuma Obi, SAN .
Verma, who said the project will mark NIPCO’s entry into the LNG sector, disclosed that Escravos in Delta State and Akwa Ibom region are being considered as potential sites for the facility, which is envisaged to have an LNG production capacity of approximately 3 million tonnes per annum.
He said, “The final location shall be determined subsequent to the ongoing feasibility study. We are looking at strategic locations that will facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets.”
According to him, the proposed development is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with the potential to serve both the international LNG market and growing domestic LNG demand in Nigeria. He noted that NIPCO had been evaluating the project for six to nine months and was considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project.
Verma stressed that while the project is presently envisaged at 3MMTPA, it remains subject to the outcome of ongoing feasibility and technical studies, project economics, regulatory approvals and final investment decisions. He added that NIPCO is also evaluating the shipping and logistics infrastructure required to support both export and domestic supply.
He said NIPCO Group is one of Nigeria’s leading integrated energy and infrastructure groups with investments spanning downstream oil and gas, natural gas distribution, CNG, LPG, propane, pipeline infrastructure, logistics, retail and hospitality, having over the years developed a significant energy infrastructure footprint across Nigeria.
Verma recalled that the has invested approximately US$2 billion in the country’s oil and gas sector covering pipeline infrastructure, CNG facilities, fuel retail outlets, AGO and PMS infrastructure, LPG and propane facilities, logistics and distribution networks, among other energy-related investments.
Industry watchers said the attendance of Chief Anekwe, a highly respected industry captain alongside Group Executive Director, Corporate Services, Alhaji Abdul signals NIPCO’s seriousness to deliver this landmark gas monetisation project that will boost exports, forex and domestic energy security.
