The Nigerian National Petroleum Corporation Limited (NNPCL) has signed a Memorandum of Understanding (MoU) with Golar LNG Limited to develop a floating liquefied natural gas (FLNG) project in Nigeria.
The signing ceremony, which took place on Wednesday, April 26, 2023, was attended by representatives from both companies, as well as government officials.
According to a statement released by NNPCL, the FLNG project is expected to create significant economic benefits for Nigeria, including the creation of jobs, the development of local infrastructure, and the generation of revenue for the government.
Speaking at the signing ceremony, Mele Kyari, Group Managing Director of NNPCL, said: “The development of the FLNG project is a key strategic priority for NNPCL, and we are pleased to be partnering with Golar LNG to bring this project to fruition. This project will help to unlock Nigeria’s vast natural gas resources and support our efforts to diversify the economy and create jobs for Nigerians.”
Karl Fredrik Staubo, CEO of Golar LNG, also spoke at the ceremony, saying, “We are delighted to partner with NNPCL on this important project. Nigeria has significant gas reserves, and we believe that the FLNG plant will help to unlock their potential and provide cleaner energy for the country. We look forward to working closely with NNPCL and the Nigerian government to make this project a success.”
The FLNG project is expected to have a production capacity of 2.5 million tonnes per annum (mtpa) and will be located in the Niger Delta region of Nigeria. The project is expected to help Nigeria monetize its vast natural gas reserves, which are estimated to be the largest in Africa and the ninth-largest in the world.
NNPCL and Golar LNG are expected to work closely together to develop the project, with NNPCL providing technical and financial support and Golar LNG providing its expertise in FLNG technology and project management. The project is expected to take several years to complete, with construction expected to begin in 2025 and production expected to start in 2030.
With the signing of these agreements, Nigeria is set to join the league of countries with FLNG facilities, including Australia, Malaysia, and Mozambique. The projects are expected to help Nigeria take advantage of the growing global demand for natural gas and LNG, particularly in Asia.