NIPCO Group has unveiled ambitious plans to construct a Floating Liquefied Natural Gas (FLNG) facility valued at over $3 billion, marking a major milestone in the energy conglomerate’s entry into Nigeria’s LNG export and domestic distribution sector.
Speaking to newsmen on Thursday in Abuja, the Managing Director of NIPCO Gas Ltd., Mr. Nagendra Verma, revealed that the project forms part of the group’s long-term commitment to monetize Nigeria’s vast natural gas reserves and expand its energy footprint.
Key Highlights of the Proposed FLNG Project
Estimated Investment: Exceeding $3 billion, with the final sum contingent on upcoming feasibility studies and commercial structuring.
Target Capacity: Envisaged to produce approximately 3 million tonnes of LNG per year.
Strategic Locations under Review: Either the Escravos area of Delta State or the Akwa Ibom region, leveraging proximity to upstream feed gas, processing infrastructure, and maritime transit routes.
Project Status: Undergoing detailed preliminary assessments, technology evaluations, and commercial structuring after six to nine months of initial internal studies.
Verma noted that the final investment decision (FID), execution timeline, and plant capacity will be determined by regulatory approvals, finalized technical assessments, and overall project economics.
The proposed development includes the offshore FLNG vessel alongside essential marine and export logistics. The setup aims to serve both high-value international export markets and Nigeria’s expanding domestic gas demand.
“NIPCO’s planned expansion into the upstream oil and gas business would complement its existing gas portfolio and strengthen the group’s vertical integration across the value chain,” Verma stated.
NIPCO currently maintains an extensive downstream presence nationwide, operating a distribution network for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), Propane, Piped Natural Gas (PNG), and Compressed Natural Gas (CNG)—including approximately 30 CNG stations across Nigeria.
Addressing the briefing, Chief Bestman Anekwe, Chairman of NIPCO Group, emphasized the broader macroeconomic benefits of the project, including improved energy security, foreign exchange generation, job creation, and industrial growth.
Anekwe disclosed that NIPCO plans to leverage its existing relationship with the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and NNPC Gas Marketing Ltd. (NGML) to secure required feed gas while forming strategic alliances with international technology providers.
Chief Paul Obi, Principal Partner at NIPCO, added that the group’s diversified holdings in logistics, retail, and hospitality continue to underpin its broader energy transition strategy, which focuses on deepening domestic CNG and LPG adoption across the country. (NAN)
