ABUJA — Energy conglomerate NIPCO Group has formally announced plans to construct a Floating Liquefied Natural Gas (FLNG) facility with an estimated capital deployment exceeding $3 billion (approximately ₦4.2 trillion), marking the indigenous firm’s major entry into the offshore LNG sector.
Disclosing the development during an executive media briefing on Thursday, September 24, 2026, in Abuja, Managing Director of NIPCO Gas Limited, Nagendra Verma, revealed that the proposed facility is designed for an annual processing capacity of 3 million metric tonnes per annum (MMTPA).
The project is currently undergoing comprehensive technical, commercial, and financial assessments, with NIPCO actively evaluating two primary coastal locations in the Niger Delta: the Escravos axis of Delta State and offshore Akwa Ibom State. Verma noted that final site selection will depend on proximity to proven upstream gas reserves, marine export logistics, and connectivity to domestic processing infrastructure.
The FLNG platform will feature integrated marine loading terminals and specialized shipping logistics. The dual-purpose business model is engineered to supply high-demand international LNG markets—generating crucial foreign exchange for the federation—while simultaneously piping processed gas into Nigeria’s domestic network to fuel industrial clusters and power generation.
“The project is expected to require an investment estimated at more than $3 billion, with the final requirement to be determined upon the completion of detailed engineering and commercial structuring,” Verma stated. “We have been evaluating this proposed FLNG project over the past six to nine months to ensure a technically robust and commercially sustainable operation.”
Speaking at the briefing, NIPCO Group Chairman, Chief Bestman Anekwe, highlighted that expanding domestic FLNG capacity directly aligns with the Federal Government’s Decade of Gas initiative, deepening local gas monetization, reducing gas flaring, and creating thousands of direct and indirect engineering jobs.
Company Secretary Chief Paul Chukwuma Obi added that NIPCO has already invested approximately $2 billion across Nigeria’s downstream and midstream sectors—including over 30 compressed natural gas (CNG) stations, LPG storage terminals, and pipeline networks—positioning the new FLNG facility as a natural vertical expansion from upstream gas production to end-user retail distribution.
The announcement comes amidst a broader push by the Federal Government and private energy operators to position Nigeria as West Africa’s premier gas hub, capitalizing on abundant national gas reserves to drive domestic industrialization and global energy security.
