LNG to be floated in Niger Delta; NNPC Seals Agreement

The Nigerian National Petroleum Corporation (NNPC) Limited has signed a significant deal with a North American firm, Golar LNG, to float Liquefied Natural Gas (LNG) offshore in Niger Delta region.
The spokesperson for NNPC, Olufemi Soneye, made this disclosure in a statement on Monday in Abuja.
Floating LNG (FLNG) refers to the process of liquefying natural gas at sea (offshore) rather than on land.
Soneye said the Project Development Agreement (PDA) aims to utilize approximately 400-500mmscf/d and produce LNG, LPG (cooking gas) and Condensate in the country.
He also mentioned that the agreement aligns with President Bola Tinubu’s commitment to swiftly commercialize Nigeria’s gas resources, fostering economic prosperity for the nation.
In addition, Soneye said while the initial project development agreement was sealed by both parties— NNPC and Golar— the final agreement is expected to be concluded before the fourth quarter of this year.
Final Investment Decision (FID) indicates the point at which the project owners have committed to investing funds to proceed with implementation.
Soneye said after the FID is concluded, the first production of gas will be expected by 2027.
The shift from oil to gas diversification in Nigeria’s oil and gas sector has been underway for decades, driven by the country’s abundance of gas reserves compared to crude oil reserves.
According to latest data by the Nigerian Upstream Regulatory Commission (NURPC), Nigeria’s crude oil reserves stands at 37 billion barrels. On the other hand, the country has a gas reserve of about 202 trillion cubic feet (tcf) and recoverable of about 139.4 tcf.
The shift to gas has also been consolidated by president Tinubu with the signing of new executive orders to boost the gas industry in the country.
President Tinubu also inaugurated three different gas plants, aiming to boost gas production in the country by at least 25%.
The gas plants are located in Delta and Imo respectively.
In addition, the president said that the country will be moving towards CNG-powered vehicles as part of his initiative to wean off the country’s dependence from petrol to gas-dependent transportation system.

Source: newsnow.com

EntekHub.com

All Author Posts