… target FID before December end 2024

… aim for first gas by 2027

Oredola Adeola

The Nigerian National Petroleum Company (NNPC) Limited has signed a Project Development Agreement (PDA) with Golar LNG to deploy a Floating Liquefied Natural Gas (LNG) facility offshore in the Niger Delta, committing to a Final Investment Decision (FID) by the end of Q4 2024 and aiming for first gas by 2027.

Olufemi Soneye, Chief Corporate Communications Officer NNPC Limited, made this known in a statement, obtained by Advisors Reports on Monday.

He stated that the signing ceremony, held on Monday, June 10, 2024, was attended by several key representatives from NNPC Limited, including Chief Financial Officer Umar Ajiya, Executive Vice President of Gas Power & New Energy Olalekan Ogunleye, and Executive Vice President of Upstream Mrs. Oritsemeyiwa Eyesan.

The Golar LNG team was led by CEO Karl Fredrik Staubo.

Advisors Reports gathered that the PDA with Golar LNG, is another major milestone achievement towards ensuring gas commercialization through deployment of an FLNG facility in Nigeria, which is in line with President Bola 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 achieving a Final Investment Decision (FID) before the end of Q4, 2024 and the first gas by 2027.

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.

Advisors Reports’ check showed that this is the third agreement to be signed between NNPC and Golar LNG, on the Floating Liquefied Natural Gas (LNG) facility.

The parties signed a heads-of-terms agreement in August 2023 for the joint development of gas fields using floating LNG producers, building on their previous deal signed in April 2023.

Following the signing of several commercial agreements, Advisors Reports gathered that both parties have allocated significant resources to initially develop a named gas field for a potential FLNG project.

Material technical and commercial progress has been made, as both parties desire to explore the potential for multiple FLNG projects to be deployed on proven stranded and associated gas fields in Nigeria.