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    NIPCO targets $3bn investment in floating LNG plant

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    By Our Correspondent

    As part of its efforts to deepen gas,utilisation, monetisation and support for domestic and export markets , NIPCO Group has announced plans to develop a Floating Liquefied Natural Gas ( FLNG) project in Nigeria estimated to cost more than $3 billion.
    Managing Director of NIPCO Gas Ltd, Nagendra Verma, made this known at a press conference recently in Abuja.The event was attended by top management Officers including the Chairman of NIPCO Group, Chief Bestman Anekwe, Group Executive Director, Alhaji Abdulkadir Aminu and Company Secretary, Paul Chukwuma Obi, SAN among others.
    Verma said the proposed project, which would mark NIPCO’s entry into the LNG sector, would have an envisaged LNG production capacity of approximately three million tonnes per annum, subject to the outcome of feasibility studies, regulatory approvals and a final investment decision.
    He said the project, being considered for locations in the Escravos area of Delta State and the Akwa Ibom region, is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with potential to serve both international LNG markets and Nigeria’s growing domestic gas demand.
    “The proposed development is expected to represent a significant investment currently estimated in excess of $3bn. 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,” Verma said.
    He disclosed that NIPCO had been evaluating the FLNG project for the past six to nine months and was currently undertaking preliminary technical, commercial and feasibility assessments, considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project.
    Verma added that the ongoing assessment covers upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics requirements, project economics and financing structure, as well as evaluation of shipping and logistics infrastructure required to support both export and domestic LNG 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.
    With Chairman Chief Bestman Anekwe leading other directors to the briefing including the Group Executive Director , Corporate Services , Alhaji Abdulkadir Aminu ,NIPCO has demonstrated its corporate commitment to delivering this breakthrough investment that will create jobs, support industrialisation and reinforce Nigeria’s position in the global LNG market.

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