NNPCL, Norwegian Firm Sign MoU To Build Floating LNG In Nigeria

Nigerian National Petroleum Company Limited (NNPCL) has signed a memorandum of understanding (MoU) with Golar LNG, a Norwegian company,  to install a floating LNG production unit in Nigeria.

This will increase the country’s domestic gas utilisation and enhance gas export.

NNPC said via its official Twitter handle on Wednesday that its CEO, Mele Kyari, signed the MoU with Golar’s chief, Karl Staubo, during a brief ceremony in Abuja.

The Nigerian oil firm said the deal was part of its efforts to deepen Nigeria’s domestic gas utilisation and enhance gas export, but it did not provide any additional information regarding the project.

Nigeria currently exports LNG via the its 22 mtpa Bonny Island LNG plant, which is being upgraded with a seventh train with a capacity of 8 mtpa.

Part of the statement said: “In furtherance of its efforts to deepen Nigeria’s domestic gas utilization and enhance gas export, Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding (MoU) with a Norwegian company, Golar LNG (GLNG), to build a Floating Liquified Natural Gas (LNG) plant in Nigeria.

“Group CEO, of NNPCL and CEO of Golar LNG, Mr Karl Fredrik Staubo, signed the agreement on behalf of their respective companies during a brief ceremony held at the #NNPCTowers in Abuja, earlier today.

“Golar LNG is one of the world’s largest independent owners and operators of marine-based LNG midstream infrastructure active in the liquefaction, transportation and regasification of natural gas.”

Nigeria LNG is a venture compromising of NNPC (49 per cent), Shell (25.6 per cent), TotalEnergies (15 per cent), and Eni (10.4 per cent).

The country has no floating LNG production projects, but Nigeria’s UTM Offshore is working to install Nigeria’s first floating LNG producer.

Golar said in February that it had secured an option to acquire a 148,000-cbm Moss-type LNG carrier which it aims to convert to a floating LNG producer.

Prior to that, the firm said in November last year it ordered long-lead items worth about $300 million for its third FLNG conversion project on the back of a growing opportunity set for new FLNG growth projects.

Golar placed orders for items targeted for a 3.5 mtpa Mark II FLNG, that can also be interchangeably used on its other two FLNG designs.

The company owns the 2.4 mtpa Hilli FLNG located in Cameroon and the 2.5 mtpa Gimi FLNG currently under conversion at Singapore’s Keppel Shipyard.