NIPCO Group plans to invest more than $3 billion in a Floating Liquefied Natural Gas (FLNG) project as the company seeks to increase gas monetization and supply in Nigeria.
NIPCO Gas Managing Director, Nagendra Verma, disclosed the plan during a briefing with journalists in Abuja on September 24, 2026. He said the company is currently assessing the technical and commercial requirements for the proposed FLNG facility.
The project would mark NIPCO’s entry into the LNG business and expand its presence across Nigeria’s gas sector. The company is currently conducting feasibility studies and preliminary assessments to determine the project’s technical, financial, and commercial requirements.
Verma said the final investment cost and location of the project will be determined after the completion of the feasibility studies, detailed engineering, and commercial structuring.
NIPCO currently estimates that the project could require more than $3 billion, although the final investment figure will depend on the outcome of the ongoing studies and project design.
The company is considering locations around Escravos in Delta State and Akwa Ibom for the proposed facility. NIPCO will select the final location after completing its feasibility studies.
According to Verma, the location will need to provide access to upstream gas supplies, LNG processing facilities, and marine transportation infrastructure. It will also support the movement of LNG to both domestic and international markets.
NIPCO has assessed the project over the past six to nine months and is now examining different development concepts, technology options, and financing structures.
The company is also assessing different commercial arrangements to determine how it can develop and operate the project on a sustainable basis.
The proposed development will include an FLNG facility alongside the marine and export infrastructure required to transport the LNG. NIPCO plans to supply both international markets and Nigeria’s growing domestic LNG market.
The company is targeting around three million tonnes of LNG production annually. However, NIPCO said the final capacity will depend on the outcome of its feasibility studies, technical assessments, and project economics.
The company will also need to secure the necessary regulatory approvals before moving ahead with the project, while a final investment decision will determine whether development proceeds.
NIPCO is assessing the shipping and logistics infrastructure required to move LNG to both export and domestic markets.
The company also plans to expand into upstream oil and gas activities, which could strengthen its presence across different parts of the gas value chain.
NIPCO currently operates across the downstream oil and gas sector, with interests covering AGO, PMS, LPG, propane, PNG and CNG. Its operations are supported by storage, transportation, logistics, and retail infrastructure, including about 30 CNG stations across Nigeria.
NIPCO Chairman Bestman Anekwe said additional LNG capacity could support gas monetization, industrial development, energy supply, foreign exchange generation, and employment.
Anekwe said NIPCO plans to leverage its existing relationships with NNPC and NNGM to secure feed gas for the project while working with international technology providers.
The proposed FLNG project forms part of NIPCO’s plans to expand beyond its established downstream operations and take a larger role across Nigeria’s gas value chain.
The development also comes as Nigeria continues to attract investment into gas infrastructure and projects aimed at increasing the use of its natural gas resources. Recent developments include the $1.108 billion Ima Gas Project approved by TotalEnergies and AMNI, as well as new gas infrastructure investments supported by the Midstream and Downstream Gas Infrastructure Fund.
Source: nairametrics.com
African Energy Council