NIPCO plans over $3 billion FLNG project to boost Nigeria’s gas monetisation

NIPCO Group plans to develop a Floating Liquefied Natural Gas (FLNG) project estimated at more than $3 billion to boost gas monetisation and supply in Nigeria.

The Managing Director of NIPCO Gas Ltd., Mr Nagendra Verma, disclosed this while briefing newsmen on the company’s plans to establish the FLNG project on Thursday, September 24, 2026, in Abuja.

The proposed project would mark NIPCO Group’s entry into the Liquefied Natural Gas sector and reinforce its long-term commitment to developing and monetising Nigeria’s natural gas resources. The company is currently undertaking feasibility studies and preliminary assessments to determine the project’s technical and commercial requirements.

NIPCO targets $3 billion FLNG project

NIPCO Gas Managing Director Nagendra Verma said the final investment requirement and location of the proposed facility would be determined after feasibility studies, detailed engineering and commercial structuring.

• “The project is expected to require an investment estimated at more than three billion dollars, the final investment requirement will be determined after feasibility studies, detailed engineering and commercial structuring.”
• “The proposed floating LNG facility may be located in the Escravos area of Delta or Akwa Ibom region.”
• “The final location will be determined after completion of the ongoing feasibility studies. The proposed location will provide access to upstream gas resources, LNG processing and marine transportation.”
• “The project will also facilitate access to international and domestic LNG markets. NIPCO has evaluated the proposed project over the past six to nine months.”

Verma said the company was undertaking preliminary assessments covering development concepts, technology solutions and financing structures. The assessments will also examine commercial options to ensure that the project is technically sound and commercially sustainable.

FLNG project targets three million tonnes

The proposed development would comprise an FLNG facility and associated marine and export infrastructure, with the potential to serve both international LNG markets and Nigeria’s growing domestic LNG demand.

NIPCO envisages LNG production capacity of about three million tonnes annually, although the company said the proposed capacity remains subject to feasibility studies, technical assessments and project economics.

Verma also said regulatory approvals and a final investment decision would determine the implementation of the project.

• NIPCO is evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply.
• The company’s planned expansion into the upstream oil and gas business is expected to complement its existing gas portfolio.
• The expansion is expected to strengthen NIPCO Group’s vertical integration across the gas value chain.
• NIPCO currently operates across the downstream oil and gas sector, with a distribution network covering AGO, PMS, LPG, propane, PNG and CNG.

The group’s network is supported by storage, logistics, transportation and retail infrastructure, while it operates about 30 CNG stations nationwide.

Chairman of NIPCO Plc, Mr Bestman Anekwe, said the group believes additional LNG capacity could support gas monetisation, industrial growth, energy security, foreign exchange generation and employment creation.

NIPCO expands across energy value chain

Anekwe said NIPCO would leverage its existing relationships with NNPC and NNGM to secure feed gas while forming strategic partnerships with international technology providers.

The proposed FLNG project comes as NIPCO seeks to expand beyond its established downstream operations and develop a wider presence across the gas value chain.

NIPCO Plc had in July 2018 recorded a total dividend payout of N563 million, which was approved by shareholders at the company’s 15th Annual General Meeting in Abuja.

The company had reported turnover of N207 billion for the 2017 financial year, representing a 35% increase from N170 billion in 2016, while the board recommended a cash dividend of 300 kobo (N3).

In April 2017, NIPCO Investments Limited, a subsidiary of NIPCO Plc, completed the takeover of Mobil Oil Nigeria Plc after acquiring a 60% majority equity stake from ExxonMobil Oil Corporation in a deal valued at $301 million.

The transaction involved the transfer by ExxonMobil of its total shareholding of 216.36 million ordinary shares of 50 kobo each in Mobil Oil Nigeria Plc to NIPCO Investments Limited.

The proposed FLNG project would add another component to NIPCO’s energy portfolio if the ongoing feasibility studies, regulatory approvals and final investment decision support its development.