Ibom LNG Signs $700m Gas Deal With UAE Group

As part of expanding partnership deal between Nigeria and the United Arab Emirates (UAE), a Memorandum of Understanding (MoU), reportedly worth $700 million was signed at the World Future Energy Summit in Abu Dhabi.

The agreement was signed by Nigeria’s Ibom LNG & Logistics Base and UAE-based Securo Investment Group, which could support the development of a 100 mscfd LNG facility in Akwa Ibom State.

The UAE and Nigeria have signalled their intentions to collaborate in developing Nigeria’s liquefied natural gas sector, among other areas.

The UAE foresees significant strategic advantages by securing future gas supplies, expanding its role in global energy markets (especially LNG and hydrogen), boosting investment opportunities in Nigeria’s diverse sectors and enhancing its geopolitical influence in Africa as a major trade hub.

Speaking to reporters, Atiku Bagudu, Nigeria Minister of Budget and Economic Planning, said, “We believe shared sustainable prosperity is possible, but it requires cooperation.”

Historically Nigeria’s LNG sector has been hampered by inadequate infrastructure, security challenges, a weak investment climate, and policy inefficiencies.

But Nigeria’s government has declared 2021-2030 the “decade of gas”, signalling an intent to leverage the country’s vast natural gas reserves to drive economic growth – and the UAE’s financial support will certainly do no harm.

Nigeria LNG currently operates a six-train facility on Bonny Island, producing 22 million tonnes per annum (mtpa) of LNG, with the Train 7 expansion under construction to add another 8 to 9 mtpa.

The UAE can draw from its experience in the Ruwais LNG project in Abu Dhabi, which is on track for a 2028 launch. It will have total export capacity of 9.6 mtpa, split between two liquefaction trains of 4.8 mtpa each, according to Gas World report.

The UAE is also investing in an ambitious Nigeria–Morocco Gas Pipeline, a $25 billion project designed to transport Nigerian gas up the coast to Morocco, for access to Europe.