NIGERIA‘s state firm, NNPC Ltd, has signed an agreement with Golar LNG (GLNG.O), opening a new tab for the deployment of a floating Liquefied Natural Gas (LNG) vessel off the coast of its oil-rich Niger Delta, NNPC said on Tuesday.
Nigeria holds the continent’s largest gas reserves of more than 200 million trillion cubic feet and is seeking investments to boost output.
NNPC spokesperson, Olufemi Soneye, said the Project Development Agreement (PDA) will utilise about 500 million standard cubic feet of gas per day, producing LNG, propane and condensate.
“The agreement aims to monetize vast proven gas reserves from shallow water resources offshore Nigeria,” Soneye said in a statement, adding that NNPC and Golar LNG have agreed to achieve a Final Investment Decision (FID) on the project before the end of the year with production expected to start in 2027.
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The deal is the second floating LNG accord the NNPC has signed with partners in the past year and follows two other LNG agreements with investors to increase its domestic supplies and exports.
Nigeria, which still flares excess gas produced due to inadequate processing infrastructure, launched a national gas expansion programme in 2020 to end flaring by increasing local use of gas.
The press release reads in full:
NNPC Ltd. Progresses Floating LNG Project with Golar LNG
…Signs PDA on 400-500mmscf Gas Deal, Eyes FID before Dec 2024 Ending
In furtherance of its commitment to monetize Nigeria’s vast natural gas resources, the NNPC Limited has executed a Project Development Agreement (PDA) with Golar LNG for the deployment of a Floating Liquefied Natural Gas (LNG) offshore Niger Delta, Nigeria.
The signing ceremony, which took place on Monday 10th June, 2024, was attended from the NNPC Limited side by the Chief Financial Officer, Umar Ajiya; Executive Vice President, Gas Power & New Energy, Olalekan Ogunleye and Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan while the Golar LNG team was led by – Karl Fredrik Staubo (CEO).
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.
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.
Olufemi O. Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja.
11 June, 2024
