NIPCO Group, through its subsidiary NIPCO Gas Ltd., has unveiled plans to float a more than $3 billion Floating Liquefied Natural Gas (FLNG) plant project, a strategic investment move to boost gas supply and commercialization and monetization in line with the Nigerian government’s efforts to unlock its vast Natural gas reserves.
NIPCO Gas’s top management, led by Mr. Nagendra Verma, recently disclosed this unprecedented investment milestone in a media parley with newsmen in Abuja, highlighting that the project would mark NIPCO Group’s entry into the LNG sector and reposition its long-term commitment to gas development.
“The initiative would strengthen the company’s commitment to developing and monetising Nigeria’s abundant natural gas resources,” Nagendra Verma said,
Verma said the project is projected to gulp approximately $3 billion and will be located in the Escravos area of Delta or the Akwa Ibom region, noting that the Final Investment Decision FID has already been structured.
“The final investment requirement will be determined after feasibility studies, detailed engineering and commercial structuring. The final location will be determined after completion of the ongoing feasibility studies,” he said.
He further attributed the location choice of the proposed multi-million gas facility to access to upstream gas resources, LNG processing facilities and marine transportation, and expressed that the project will facilitate access to international and domestic LNG markets, which the company had evaluated for six to nine months.
According to NIPCO, the company’s decision to venture into a gas project of this magnitude required critical and articulated planning procedures, and preliminary assessments covering development concepts, technology solutions and financing structures.
