- NNPC and Golar LNG will deploy a floating LNG vessel off the Niger Delta.
- Production starts in 2027, using 500 million cubic feet of gas daily.
- The project supports Nigeria’s 2020 program to reduce gas flaring and increase local gas use.
NNPC, Nigeria’s state oil firm, signed a deal with Golar LNG to deploy a floating LNG vessel off the Niger Delta. This agreement, announced on Tuesday, aims to exploit Nigeria’s vast gas reserves, the largest in Africa, with over 200 trillion cubic feet.
The Project Development Agreement (PDA) plans to use about 500 million standard cubic feet of gas daily to produce LNG, propane, and condensate. “The agreement aims to monetize vast proven gas reserves from shallow water resources offshore Nigeria,” said NNPC spokesperson Olufemi Soneye.
NNPC and Golar LNG plan to reach a Final Investment Decision (FID) by the end of the year and start production in 2027. This deal marks NNPC’s second floating LNG agreement in the past year, following previous deals to enhance domestic supply and boost exports.
Nigeria launched its national gas expansion program in 2020 to curb gas flaring and improve local gas usage by increasing processing capacity. The lack of adequate infrastructure leads to flaring excess gas.
NNPC’s collaboration with Golar LNG taps into Nigeria’s offshore gas resources. This initiative aligns with a strategic push to leverage natural gas for economic growth, energy security, and environmental benefits.
As Africa’s top oil producer, Nigeria seeks substantial investment to increase its gas output and reduce flaring. Deploying the floating LNG vessel will help monetize Nigeria’s extensive gas reserves and address energy infrastructure gaps.
NNPC’s expanding agreements focus on enhancing the country’s gas production capabilities and maximizing the value of its natural resources.