NIPCO Group is weighing a proposed $3 billion Floating Liquefied Natural Gas (FLNG) project in either Delta or Akwa Ibom State, with the initiative projected to produce approximately three million tonnes of LNG yearly.

The integrated energy and infrastructure group said it has been evaluating the proposed project for the past nine months and is currently undertaking preliminary technical, commercial and feasibility assessments ahead of a final investment decision.

The Managing Director and Chief Executive Officer of NIPCO Gas Limited, Nagendra Verma, disclosed this in Abuja, saying the proposed FLNG project would mark the Group’s planned entry into the LNG sector.

Verma said the project represents a strategic expansion into LNG and reinforces the Group’s long-term commitment to the development and monetisation of Nigeria’s natural gas resources.

The proposed development is expected to represent a significant investment currently estimated at more than $3 billion.

Verma said the project is envisaged to be located either in the Escravos region of Delta State or in the Akwa Ibom region, with the locations strategically positioned to facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets.

He said the final location would be determined after completion of the ongoing feasibility study.

According to him, the project is currently envisaged to have an LNG production capacity of approximately three million tonnes per annum, subject to the outcome of ongoing studies, project economics, regulatory approvals and final investment decision.

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

Giving details of the project’s development status, Verma said the ongoing work includes evaluation of upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure and domestic LNG supply opportunities.

The assessment also covers shipping and logistics requirements, project economics and financing structure, environmental and regulatory requirements, engineering, procurement, construction and commissioning strategy, as well as potential strategic and technical partnerships.

Verma added that the Group expects to complete the feasibility study in the next few months, following which the project configuration, investment requirements, development schedule and implementation structure would be further defined.