NIPCO weighs $3bn LNG project with 3m-tonne annual target

NIPCO Group is assessing a floating liquefied natural gas project in Nigeria that could require more than $3bn and produce about three million tonnes of LNG a year. The proposal remains at feasibility stage: NIPCO has not taken a final investment decision, and the capacity estimate is subject to technical studies, project economics and regulatory approvals.

Managing Director of NIPCO Gas Nagendra Verma outlined the plan at an Abuja briefing on September 24. The company is weighing sites in the Escravos area of Delta State or in Akwa Ibom. It says the final location will depend on the outcome of its feasibility work, which is expected to be completed in the coming months.

The assessment covers access to gas reserves, liquefaction technology, shipping and marine infrastructure, export facilities, financing and domestic demand. If advanced, the floating plant would be designed to serve overseas buyers and Nigeria’s gas market. NIPCO executives have said local production could reduce exposure to imported freight, insurance, clearing and exchange-rate costs; those potential price effects have not been demonstrated.

The proposal would mark NIPCO’s planned entry into LNG. Its scope, investment requirement, location and schedule remain subject to feasibility work, regulatory approvals and a final investment decision. The company is considering partnerships for gas supply, technology and project delivery. No final construction decision or completed supply agreement was identified in the current reporting.