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NNPCL, Golar LNG sign MoU to build floating LNG in Nigeria

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Nigerian National Petroleum Company Limited (NNPCL) and Norwegian firm, Golar LNG, have signed a memorandum of understanding (MoU) to build a floating liquefied natural gas (LNG) plant in Nigeria. The deal aims to boost Nigeria’s domestic gas utilisation and enhance gas export capabilities. NNPCL CEO, Mele Kyari, and Golar’s CEO, Karl Staubo, signed the MoU during a brief ceremony in Abuja. The floating LNG production unit is expected to increase the country’s domestic gas utilisation and enhance gas export capabilities. However, no further details have been provided regarding the project.

Nigeria currently exports LNG via its 22 mtpa Bonny Island LNG plant, which is being upgraded with a seventh train with a capacity of 8 mtpa. This move is part of the country’s efforts to deepen domestic gas utilisation and enhance gas export capabilities. The new floating LNG plant will help to increase the country’s gas production and provide access to new markets.

Golar LNG is one of the world’s largest independent owners and operators of marine-based LNG midstream infrastructure. The company is active in the liquefaction, transportation, and regasification of natural gas. Nigeria LNG is a venture comprising of NNPC (49%), Shell (25.6%), TotalEnergies (15%), and Eni (10.4%). Although the country has no floating LNG production projects yet, UTM Offshore is working to install Nigeria’s first floating LNG producer.

Golar LNG secured an option to acquire a 148,000-cbm Moss-type LNG carrier in February, which it aims to convert to a floating LNG producer. The company also ordered long-lead items worth about $300 million for its third FLNG conversion project in November last year. It placed orders for items targeted for a 3.5 mtpa Mark II FLNG, which 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.

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