NNPC and Norway's [Firm Name] Join Forces on Floating LNG Project

NNPC and a Norwegian company are collaborating to build a floating liquefied natural gas plant.

NNPC Partners with Golar LNG to Build Floating LNG Plant in Niger Delta: A project development agreement has been signed to construct a floating liquefied natural gas plant, expected to start production in 2027 and monetize Nigeria's gas resources.

The Nigerian National Petroleum Company (NNPC) Limited and Golar Liquefied Natural Gas Energy (GLNG), a Norwegian company, have signed a project development agreement (PDA) for the installation of a floating LNG offshore in the Niger Delta.

A legal contract that describes the particulars of a project between two or more entities is called a project development agreement.

The plant intends to start producing gas in 2027, according to NNPC spokesman Femi Soneye, who made the announcement on Tuesday, June 11. A final investment decision is anticipated by the end of this year.

The oil company said that Umar Ajiya, NNPC's Chief Financial Officer, was present at the signing event, which was held on Tuesday, June 10.

The plant intends to start producing gas in 2027, according to NNPC spokesman Femi Soneye, who made the announcement on Tuesday, June 11. A final investment decision is anticipated by the end of this year.

The oil company declared that Umar Ajiya, the Chief Financial Officer of NNPC, Olalekan Ogunleye, the Executive Vice-President of Gas, Power, and New Energy, and Oritsemeyiwa Eyesan, the Executive Vice- President of Upstream, were present at the signing ceremony, which was held on Tuesday, June 10.

Karl Fredrik Staubo, the Chief Executive Officer (CEO), oversaw the Golar LNG team.

According to NNPC, the PDA represents yet another significant step in assuring gas commercialization by deploying an FLNG facility in Nigeria.

The arrangement, according to the national oil firm, is in line with President Bola Tinubu's pledge to quickly commercialize Nigeria's gas resources for the benefit of the economy.

With this arrangement, offshore oilfields with sizable proved gas reserves from shallow water resources will be able to generate income.

“The PDA also outlines the monetization plan that will utilize approximately 400- 500mmscf/d and produce LNG, LPG and Condensate.” The text of the statement says.

Independent owners and operators of LNG infrastructure, such as carriers, floating liquefaction (FLNG) vessels, and floating storage and regasification units (FSRUs), are Golar LNG Limited.

A memorandum of understanding (MoU) was signed by the NNPC and GLNG in April 2023 to construct the floating LNG facility.