NNPC, Golar Sign Floating LNG Deal to Deliver 500mmscf Gas

By Adedapo Adesanya

The Nigerian National Petroleum Company (NNPC) Limited has signed a Project Development Agreement (PDA) with Golar LNG for the deployment of a Floating Liquefied Natural Gas offshore Niger Delta that would deliver 400-500 million standard cubic feet per day (mmscf/d) of gas.

This was disclosed in a statement by NNPC’s Chief Communication Officer, Mr Olufemi Soneye, who said the signing ceremony, which took place in Abuja, was attended by the NNPC’s Chief Financial Officer, Mr Umar Ajiya; the Executive Vice President, Gas Power & New Energy, Mr Olalekan Ogunleye; the Executive Vice President, Upstream, Mrs Oritsemeyiwa Eyesan; and the Golar LNG team led by Mr Karl Fredrik Staubo (CEO).

According to him, the project development agreement “is another major milestone achievement towards ensuring gas commercialization through the deployment of an FLNG Facility in Nigeria, which is in line with Mr Bola Tinubu’s resolve to rapidly commercialize Nigeria’s gas assets for the economic prosperity of the nation.

The agreement aims to monetize vast proven gas reserves from shallow water resources offshore Nigeria. The PDA also outlines the monetization plan that will utilize approximately 400-500 mmscf/d and produce LNG, LPG and Condensate.

The statement explained that the partners, NNPC Limited and Golar LNG have expressed their commitment to achieve a Final Investment Decision (FID) before the end of the first quarter of 2024 and first gas by 2027.

“Golar LNG Limited is a renowned independent owner and operator of LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels”, he added.

The deal is the second floating LNG accord the NNPC has signed with partners in the past year and follows two other LNG agreements with investors to increase its domestic supplies and exports.

Nigeria, Africa’s top oil producer, holds the continent’s largest gas reserves of more than 200 million trillion cubic feet and is seeking investments to boost output.

However, the country which still flares excess gas produced due to inadequate processing infrastructure, launched a national gas expansion programme in 2020 to end flaring by increasing local use of gas.