NIPCO Launches $3 Billion FLNG Project in Nigeria
Nigeria's gas fortunes are getting a boost thanks to NIPCO Group's ambitious plan to develop a Floating Liquefied Natural Gas (FLNG) facility. The $3 billion investment, which will have a capacity of 3 million tonnes per annum, is expected to tap into the country's stranded gas reserves in Escravos and Akwa Ibom.
NIPCO's decision marks a significant shift in the country's upstream gas production philosophy. For decades, Nigeria has relied on the NLNG plant on Bonny Island, but an FLNG facility will bring liquefaction to the gas field, making it ideal for stranded gas that cannot justify an onshore plant.
The company is looking to tap into its existing relationships with NNPC and IOCs to accelerate gas sourcing and form potential partnerships. NIPCO has already sunk approximately $2 billion in Nigeria's oil and gas sector, covering pipeline infrastructure, CNG facilities, retail outlets, LPG and propane facilities.