NIPCO Group has announced plans to build a floating liquefied natural gas (FLNG) facility that could cost more than $3 billion, to enable its entry into the LNG sector.
Nagendra Verma, Managing Director of NIPCO Gas, said the project is envisaged to produce about three million tonnes of LNG a year. He stressed that capacity remains subject to feasibility studies, technical assessments and project economics.
Verma said the final investment figure and site will be set after feasibility studies, detailed engineering and commercial structuring. Locations under consideration include the Escravos area of Delta State and the Akwa Ibom region. Regulatory approvals and a final investment decision will determine whether the project goes ahead.
NIPCO has spent six to nine months evaluating the project, and its assessment covers upstream gas supply, FLNG technology, marine and export infrastructure, shipping, financing and domestic LNG opportunities. The facility could serve both export markets and growing domestic demand.
Verma further said NIPCO’s planned move into upstream oil and gas would complement its existing gas portfolio. The company already runs a nationwide distribution network for diesel, petrol, LPG, propane, piped natural gas and CNG.
NIPCO Group Chairman Bestman Anekwe said the added LNG capacity could support gas monetisation, industrial growth, energy security, foreign exchange earnings and job creation. The group also plans strategic partnerships with international technology providers.
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