NNPC Ltd. advances floating LNG project with Golar LNG, aims for FID by December 2024

Photo shows L-R: NNPC Ltd’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan; Chief Financial Officer, Mr. Umar Ajiya; Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye; CEO Golar LNG Ltd, Karl Fredrik Staubo (CEO) and two other officials from Golar LNG, during the signing ceremony of the Project Development Agreement (PDA) between the NNPC Ltd and Golar LNG Ltd for the deployment of a Floating Liquefied Natural Gas (LNG) offshore Niger Delta, Nigeria, on Monday.

In a significant step towards harnessing Nigeria's vast natural gas reserves, the NNPC Limited has signed a Project Development Agreement (PDA) with Golar LNG to deploy a Floating Liquefied Natural Gas (LNG) facility offshore the Niger Delta region. 

The agreement, executed on June 10, 2024, marks a crucial milestone in the company's efforts to monetize Nigeria's natural gas resources. 

The signing ceremony was attended by NNPC Limited officials, including Chief Financial Officer Umar Ajiya, Executive Vice President for Gas Power & New Energy Olalekan Ogunleye, and Executive Vice President for Upstream Mrs. Oritsemeyiwa Eyesan. The Golar LNG team was led by CEO Karl Fredrik Staubo.

The PDA is for a gas deal of approximately 400-500 million standard cubic feet per day (mmscf), with the goal of reaching Final Investment Decision (FID) by the end of December 2024. 

This development underscores the NNPC Limited's commitment to leveraging its natural gas resources to drive economic growth and energy security in Nigeria.

The PDA, according to a press release issued by NNPC Ltd, is another major milestone achievement towards ensuring gas commercialization through deployment of an FLNG Facility in Nigeria, which is in line with Mr. President Bola Ahmed Tinubu’s resolve to rapidly commercialize Nigeria’s gas assets for the economic prosperity of the nation.

The agreement aims to monetize vast proven gas reserves from shallow water resources offshore Nigeria. The PDA also outlines the monetization plan that will utilize approximately 400-500mmscf/d and produce LNG, LPG and Condensate.

The partners, NNPC Limited and Golar LNG, have both expressed their commitment to achieve Final Investment Decision (FID) before end of Q4, 2024 and first gas by 2027.

A press release signed by Olufemi O. Soneye Chief Corporate Communications Officer, NNPC Ltd., states that Golar LNG Limited is a renowned independent owner and operator of LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels. 
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