Targets 3 million tonnes annually as firm enters LNG sector; final investment decision pending feasibility studies

NIPCO Group has announced plans to develop a Floating Liquefied Natural Gas (FLNG) facility in Nigeria at an estimated investment of more than $3 billion, marking the company’s entry into the LNG sector.

The proposed project, disclosed by NIPCO Gas Ltd. Managing Director, Nagendra Verma at a press briefing in Abuja on Thursday, September 24, 2026, is projected to produce approximately three million tonnes of LNG annually.

The facility is being considered for two locations: the Escravos area of Delta State or the Akwa Ibom region.

“The final location will be determined after completion of the ongoing feasibility studies,” Verma said, adding that the chosen site would provide access to upstream gas resources, LNG processing facilities and marine transportation.

Verma said NIPCO has been evaluating the project for the past six to nine months and is currently undertaking preliminary technical, commercial and feasibility assessments.

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

“The final investment requirement will be determined after feasibility studies, detailed engineering and commercial structuring,” Verma said. He noted that the production capacity remains subject to feasibility studies, technical assessments, project economics, regulatory approvals and a final investment decision.

Abdulkadir Aminu, Group Executive Director of NIPCO Plc, said the project is intended to reduce the cost of imported LNG. “If indigenous production is done, then there is no impact on the importation or the fluctuation of dollar exchange rate and no duty,” Aminu said. “When any product is being manufactured indigenously, the pricing is expected to be low compared to the imported product”.

NIPCO Chairman, Bestman Anekwe said additional LNG capacity would support gas monetisation, industrial growth, energy security, foreign exchange generation and employment creation.

He said the group would leverage its existing relationships with the Nigerian National Petroleum Company (NNPC) and form strategic partnerships with international technology providers.

The proposed FLNG project represents a significant expansion for NIPCO, which currently operates about 30 CNG stations nationwide and maintains a downstream distribution network covering Automotive Gas Oil, Premium Motor Spirit, LPG, propane and Compressed Natural Gas. The company said it is also evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply.

Implementation will depend on the outcome of feasibility studies and a final investment decision.