NNPC, Norwegian company sign project development agreement for floating LNG plant

The Nigerian National Petroleum Company (NNPC) Limited says it has executed a project development agreement (PDA) with Golar Liquefied Natural Gas Energy (GLNG), a Norwegian company, for the deployment of a Floating LNG offshore in the Niger Delta.

A project development agreement is a legal document that outlines the specific details of a project between two or more entities.

According to a statement on Tuesday by Femi Soneye, NNPC’s spokesperson, the facility targets the commencement of gas production in 2027 and a final investment decision by the fourth quarter (Q4) of the year.

The oil firm said the signing ceremony took place on June 10 and was attended by Umar Ajiya, NNPC’s chief financial officer; Olalekan Ogunleye, executive vice-president of gas power and new energy; and Oritsemeyiwa Eyesan, executive vice-president of upstream.

The Golar LNG team was led by Karl Fredrik Staubo, its chief executive officer (CEO), the statement said.

The PDA, according to NNPC, is another key milestone towards ensuring gas commercialisation through the deployment of an FLNG facility in Nigeria.

The national oil company said the agreement is in tandem with President Bola Tinubu’s resolve to rapidly commercialise Nigeria’s gas assets for the economic prosperity of the country.

The agreement, according to the statement, aims to monetise vast proven gas reserves from shallow water resources on offshore oilfields.

“The PDA also outlines the monetization plan that will utilize approximately 400-500mmscf/d and produce LNG, LPG and Condensate,” the statement reads.

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

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

The NNPC, had in April 2023, signed a memorandum of understanding (MoU) with GLNG to build the floating LNG plant.