NNPC Ltd, Golar LNG inch closer to floating LNG project with PDA on 400-500mmscf gas deal

Business a.m.

L-R: Oritsemeyiwa Eyesan, NNPC Ltd’s executive vice president, Upstream; Umar Ajiya, chief financial officer; Olalekan Ogunleye,executive vice president, gas, power & new energy;Karl Fredrik Staubo, CEO,Golar LNG Ltd; and two other officials from Golar LNG, during the signing ceremony of the Project Development Agreement (PDA) between the NNPC Ltd and Golar LNG Ltd for the deployment of a Floating Liquefied Natural Gas (LNG) offshore Niger Delta, Nigeria, recently

NNPC Limited has intensified its mission to capitalise on Nigeria’s vast natural gas reserves by inking a Project Development Agreement (PDA) with Golar LNG for the establishment of a floating Liquefied Natural Gas (FLNG) project in the offshore Niger Delta region.

The signing ceremony was held on Monday, 10th June 2024, and was attended by senior representatives from both NNPC Limited and Golar LNG.

The NNPC Limited delegation included Umar Ajiya, the chief financial officer; Olalekan Ogunleye, executive vice president, gas power & new energy, and  Oritsemeyiwa Eyesan,executive vice president, upstream. The Golar LNG team was led by – Karl Fredrik Staubo, the chief executive officer.

According to the NNPCL, the PDA is another major milestone achievement towards ensuring gas commercialisation through deployment of an FLNG Facility in Nigeria, which is in line with President Bola Ahmed Tinubu’s resolve to rapidly commercialise Nigeria’s gas assets for the economic prosperity of the Nation.

The recent agreement aims to monetise vast proven gas reserves from shallow water resources offshore Nigeria. The PDA also outlines the monetisation plan that will utilise approximately 400-500mmscf/d and produce LNG, LPG and Condensate.

The partners, NNPC Limited and Golar LNG have both expressed their commitment to achieve Final Investment Decision (FID) before the end of Q4, 2024 and first gas by 2027.

Golar LNG Limited is a renowned independent owner and operator of LNG infrastructure, including carriers, floating storage and regasification units (FSRUs), and floating liquefaction (FLNG) vessels.