ABUJA, Nigeria — NIPCO Group is planning a floating liquefied natural gas facility with an estimated cost exceeding $3 billion as part of its expansion into Nigeria’s LNG sector.
The Managing Director of NIPCO Gas Ltd., Nagendra Verma, said the company is undertaking feasibility studies and preliminary assessments to determine technical and commercial requirements for the project. Kanyi Daily reports that the final investment requirement and facility location would be confirmed after these studies conclude.
The proposed FLNG installation could serve both international LNG markets and Nigeria’s domestic demand. NIPCO is targeting an annual production capacity of about three million tonnes, though the company noted this figure remains subject to feasibility outcomes and project economics.
Verma indicated the facility could be positioned in either the Escravos area of Delta State or Akwa Ibom State, with location finalized following the completion of ongoing assessments. The site would need to provide access to upstream gas resources and marine transportation infrastructure.
Over the past six to nine months, NIPCO has evaluated development concepts, technology solutions and financing structures. The company is also examining shipping and logistics infrastructure to support both export and domestic supply.
Regulatory approvals and a final investment decision will determine whether the project proceeds. NIPCO Chairman Bestman Anekwe said additional LNG capacity could support gas monetisation, industrial expansion, energy security, foreign exchange generation and job creation.
The company plans to leverage existing relationships with the Nigerian National Petroleum Company and the Nigerian Gas Masterplan to secure feed gas while forming partnerships with international technology providers.
This marks NIPCO’s entry into the LNG sector. The group currently operates across downstream oil and gas, distributing petroleum products and gas through a network that includes roughly 30 CNG stations nationwide. NIPCO acquired a 60% stake in Mobil Oil Nigeria in 2017 for $301 million.
