In a significant stride toward enhancing its energy infrastructure, Nigeria, through a partnership with Golar LNG, is set to establish a Floating Liquefied Natural Gas (FLNG) facility off the Niger Delta. This facility, designed to process 400-500 million standard cubic feet per day (MMscf/d), will produce LNG, LPG, and condensate, marking a pivotal development in the nation’s energy sector. With an anticipated final investment decision (FID) by the end of 2024 and operational by 2027, this project aligns with Nigeria’s broader goals of leveraging its vast gas resources for economic growth and sustainability.
Background and Impact of the FLNG Facility
This initiative is part of a wider national agenda to monetize Nigeria’s substantial offshore natural gas resources. It aligns closely with the directives of Nigerian President Bola Ahmed Tinubu, who has prioritized using Nigerian gas to fuel sustained economic growth. The FLNG facility is not just about gas production; it’s a strategic move to strengthen the commercialization of FLNG technology within the region.
The African Energy Chamber (AEC) has lauded this development, recognizing the facility’s potential to scale up gas commercialization in Nigeria and set a precedent for industrialization across Africa. This project represents a significant shift in how African nations like Nigeria manage and utilize their natural resources, focusing on creating value and sustainable development domestically.
Wider Developments in Nigeria’s Gas Sector
2024 has been a landmark year for Nigeria’s gas sector, with the inauguration of three major gas projects. These include the expanded AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3-km ANOH to Obiafu-Obrikom-Oben Custody Transfer Metering Station Gas Pipeline. These developments collectively aim to supply an additional 500 MMscf/d to the domestic market, bolstering Nigeria’s internal energy capabilities.
Additionally, progress on the Nigeria-Morocco Gas Pipeline continues, with feasibility studies for the initial segment connecting Morocco to Mauritania and Senegal nearing completion. This ambitious $25-billion project is expected to reach its FID by 2025, further enhancing the regional energy landscape.
Supporting Policies and International Investment
Nigeria’s pipeline of gas projects is underpinned by robust policy implementation designed to attract foreign investment and support sustainable project development. Initiatives like the “Decade of Gas,” launched in 2021, have positioned natural gas as a catalyst for Nigeria’s industrial growth. Supported by the Petroleum Industry Act (2021), which provides a modern licensing framework for the natural gas industry, these policies aim to foster a favorable investment climate and drive economic growth through enhanced gas utilization.
International interest in Nigeria’s gas market is also rising, evidenced by Shell’s commitment to invest up to $1 billion over the next decade to develop natural gas resources in the country. This investment is expected to tap into Nigeria’s potential and stimulate further international collaborations.
Role of CLG Energy Transition Centre
The CLG Energy Transition Centre is committed to supporting Nigeria’s strategic FLNG development, positioning the country as a leader in the natural gas sector. By providing expertise and facilitating strategic partnerships, the Centre enhances project implementation aligned with global sustainability standards. This involvement underscores our dedication to fostering sustainable energy developments that not only meet local energy demands but also contribute significantly to regional economic growth.
Future Outlook and Global Participation
As Nigeria prepares to host the Africa Energy Week conference, with a special focus on Invest in Nigeria Energies, the spotlight will be on the vast opportunities within the country’s burgeoning energy sector. The newly announced FLNG project, spearheaded by Golar LNG, will be a centerpiece, demonstrating the potential for significant economic, employment, and infrastructure development.
Shaping Africa’s Future at the Energy Transition Centre
As we embark on a critical journey towards a sustainable energy future, your involvement is crucial. The Energy Transition Centre at CLG is at the forefront of transforming Africa’s energy landscape, advocating for an energy mix, including renewable energy adoption to foster economic growth and improve quality of life. We invite you to join us in this essential mission. Whether you’re an industry expert, a policy maker, or a concerned citizen, your contribution can make a significant difference. For guidance, insights, or to share your ideas, feel free to contact the Energy Transition Centre today with questions:
- Oneyka Ojogbo, Head of Energy Transition Centre: [email protected]
- Leon van Der Merwe, Head of Energy Transition Centre: [email protected]
- Brenda Wangura: [email protected]
Together, we can shape a brighter, more sustainable future.
