To float LNG offshore in the Niger Delta region, the Nigerian National Petroleum Corporation (NNPC) Limited has inked a major agreement with Golar LNG, a North American company. Olufemi Soneye, the NNPC spokesperson, revealed this information in a statement on Monday in Abuja.
The method of liquefying natural gas offshore, at sea, as opposed to on land, is known as floating LNG (FLNG).
According to Soneye, the Project Development Agreement (PDA) intends to use between 400 and 500 mmscf/d to manufacture LNG, LPG (cooking gas), and condensate domestically
He also mentioned that the agreement aligns with President Bola Tinubu’s commitment to swiftly commercialize Nigeria’s gas resources, fostering economic prosperity for the nation.
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“The PDA is another major milestone achievement towards ensuring gas commercialization through deployment of an FLNG Facility in Nigeria, which is in line with Mr. President Bola Ahmed Tinubu’s resolve to rapidly commercialize Nigeria’s gas assets for the economic prosperity of the Nation.
“The agreement aims to monetize vast proven gas reserves from shallow water resources offshore Nigeria.
“The PDA also outlines the monetization plan that will utilize approximately 400-500mmscf/d and produce LNG, LPG and Condensate,” he said.
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FID to be reached at fourth quarter of 2024
In addition, Soneye said while the initial project development agreement was sealed by both parties— NNPC and Golar— the final agreement is expected to be concluded before the fourth quarter of this year.
Final Investment Decision (FID) indicates the point at which the project owners have committed to investing funds to proceed with implementation.
Soneye said after the FID is concluded, the first production of gas will be expected by 2027.
“The Partners, NNPC Limited and Golar LNG have both expressed their commitment to achieve Final Investment Decision (FID) before end of Q4, 2024 and first gas by 2027.
“Golar LNG Limited is a renowned independent owner and operator of LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels,” Soneye said.
