Abuja:NIPCO Group has unveiled plans to develop a Floating Liquefied Natural Gas (FLNG) project, with an investment exceeding $3 billion, aimed at enhancing gas monetization and supply. The announcement was made by NIPCO Gas Ltd. Managing Director, Mr. Nagendra Verma, during a briefing in Abuja.
According to News Agency of Nigeria, Verma emphasized that the project would mark NIPCO Group’s entry into the LNG sector, reinforcing its commitment to the development of Nigeria’s natural gas resources. The investment amount will be finalized following feasibility studies, detailed engineering, and commercial structuring.
The proposed FLNG facility may be located in the Escravos area of Delta or the Akwa Ibom region, with the final site to be determined after ongoing feasibility studies. These locations would provide access to upstream gas resources, LNG processing facilities, and marine transportation, facilitating access to both international and domestic LNG markets.
Preliminary assessments by NIPCO have been
underway for six to nine months, covering development concepts, technology solutions, and financing structures. These evaluations are meant to ensure a technically sound and commercially sustainable project. The development will include an FLNG facility and associated marine and export infrastructure, with a potential LNG production capacity of about three million tonnes annually, subject to further feasibility studies and technical assessments.
The project’s implementation will depend on regulatory approvals and a final investment decision. NIPCO is also assessing the necessary shipping and logistics infrastructure to support both export and domestic LNG supply. The planned expansion into the upstream oil and gas sector is expected to complement NIPCO’s existing gas portfolio, enhancing its vertical integration across the gas value chain.
NIPCO has a strong presence in Nigeria’s downstream oil and gas sector, with expertise in developing, financing, constructing, and operating energy infrastructure. The co
mpany operates a nationwide distribution network that includes Automotive Gas Oil, Premium Motor Spirit, LPG, propane, Piped Natural Gas, and Compressed Natural Gas, supported by storage, logistics, transportation, and retail infrastructure. It currently operates about 30 CNG stations nationwide.
Chief Bestman Anekwe, Chairman of NIPCO Group, stated that the additional LNG capacity would support gas monetization, industrial growth, and energy security, while also contributing to foreign exchange generation and employment creation. The project will leverage existing relationships with the Nigerian National Petroleum Company Ltd. and NNGM for securing feed gas and form strategic partnerships with international technology providers.
NIPCO will continue to engage with Nigerian authorities, regulators, and various partners to advance the project. As one of Nigeria’s leading integrated energy and infrastructure companies, NIPCO has investments across oil and gas distribution, CNG, LPG, propane, and pipeline infra
structure. Chief Paul Obi, Principal Partner at NIPCO, noted that the group’s investments also include logistics, retail, and hospitality, supporting its role in Nigeria’s evolving energy sector and contributing to the country’s energy transition and economic growth.