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    NNPC, Golar LNG sign pact for FLNG unit


Golar and NNPC plan to jointly develop specific gas fields within Nigeria by utilising the FLNG technology. [Image: NNPC/X]

by: Shardul Sharma

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Natural Gas & LNG News, Africa, Liquefied Natural Gas (LNG), Security of Supply, Corporate, News By Country, Nigeria

NNPC, Golar LNG sign pact for FLNG unit

Nigerian state-owned energy company NNPC has signed a project development agreement (PDA) with Golar LNG for the deployment of a floating LNG (FLNG) unit offshore the Niger Delta, the company announced on June 10.

NNPC stated that the final investment decision on the project is expected by the end of this year, with the first gas likely to be produced in 2027. The PDS marks an expansion of their initial cooperation, which was formalised through a memorandum of understanding signed last year and a heads of term in August. It also outlines the monetisation plan that will utilise approximately 400-500mn ft3/day of gas to produce LNG, LPG, and condensate.

Golar and NNPC plan to jointly develop specific gas fields within Nigeria. The primary focus of this strategic collaboration is the utilisation of FLNG technology for the development of these gas fields. FLNG technology enables the extraction, liquefaction, and storage of natural gas directly at the offshore production site, providing a flexible and efficient means of processing and transporting natural gas to markets.

The relevant fields could fully utilise FLNG Hilli following the end of her current contract in mid-2026, or utilise a MKII FLNG.

“The PDA is another major milestone achievement towards ensuring gas commercialisation through the deployment of an FLNG facility in Nigeria,” NNPC said.

This development aligns with a transition that NNPC underwent recently, transforming into a limited liability company. The chair of its board, Margery Chuba-Okadigbo, told NGW on the sidelines of the Gastech conference in Milan in September 2022 that the transformation would lead to faster decision-making and improved confidence in the organisation among stakeholders and international partners.

Nigeria, already a significant player in the African LNG export landscape, is further enhancing its role through endeavors like these.