Nigeria plan to harness her abundant natural gas resources is concomitantly taken another positive dimension with the taken off of another 3-MPTA FLMG project coming for mohths after a milestone signing of UTM FLNG Head of Term between NNPC and other major investors.  

The design validation and Pre-FEED phase for two 3-Mtpa FLNG Projects being undertaken by Nigerian companies Ace Gas and FLNG (ACE), and Transoceanic Gas and Power (Transoceanic) has officially commenced with Wison New Energies handling the FLNG design and EPC. Wison has signed the contract and states mobilization funds have been disbursed for this phase of the project.

Under the agreement, Wison is to provide the design validation and engineering studies for the FLNG facility to support the “design one and build two strategies” to be applied across Ace and Transoceanic projects offshore Escravos and Pennington respectively. The FLNG will produce, store and offload 3-Mpta LNG and associated LPG and condensates for transport to market.

3.0 MPTA FLNG Project

Ace Gas & FLNG Company Limited is aimed to develop over 3MTPA of LNG. The feedstock for the project will be sourced from multiple fields located within a minimum of 4 blocks – Odimodi Marginal Field, Osuopele Marginal Field, and Gwatto Marginal Field – in the swamp and shallow water regions close to OML 109.

 The NPV(10) for this project is expected to exceed $1 Billion, and it benchmarks excellently with other similar projects in Africa. Ace have developed an integrated model that ensures sufficient gas feedstock for Phase 1 and Phase 2 of the project, as well as a possible expansion. The model will help derisk upstream gas resourcing, and we guarantee at least 7 TCF of gas supply.

The midstream products expected from the project include LNG, LPG, and condensates. The LNG will be marketed through medium to long-term contracts, targeting critical gas shortages in Europe and potentially replacing Russian gas. We will supply 50MMSCFd of treated gas to Phase 1 of the floating power barge. The condensates will be sold based on fixed-term and spot market oil markets, and exports will go through the most proximal terminal. We will assess opportunities for a direct contract with a refinery. LPG will be distributed locally, and excess LPG will be distributed across West Africa to provide direct import substitution and reduce the cost of domestic cooking gas.

Commenting on the milestone, Chris Nwokolo – Group CEO from Ace Gas and FLNG said “We’re excited about the collaboration with Wison New Energies. We thank our team, partners and the government for their efforts and support in ensuring this project becomes a reality.”

Mr. Fan Jian, Country Manager of Nigeria from Wison New Energies, remarked “Wison is excited to see the project has been officially entering into the pre-FEED stage. We’re confident that our FLNG EPCIC experience will guarantee a successful and efficient delivery. We are excited about advancing to the next stage in the near future.”