By Peace Udugba — The Daily Torch Media
NIPCO Group has unveiled plans to develop a Floating Liquefied Natural Gas (FLNG) project in Nigeria, with an estimated investment of more than $3 billion and a proposed production capacity of about three million metric tonnes of LNG annually.
The Managing Director of NIPCO Gas Ltd, Nagendra Verma, disclosed this on Thursday, September 24, 2026, at a press conference in Abuja.
The briefing was attended by the Chairman of NIPCO Group, Chief Bestman Anekwe; Group Executive Director, Corporate Services, Alhaji Abdulkadir Aminu; and Company Secretary, Paul Chukwuma Obi, SAN.
Verma said the proposed project would mark NIPCO’s entry into Nigeria’s liquefied natural gas sector and is being considered for locations in the Escravos area of Delta State and the Akwa Ibom region.
According to him, the proposed development would comprise an FLNG facility, alongside marine and export infrastructure capable of supplying both the international LNG market and Nigeria’s growing domestic market.
”This proposed development is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with the potential to serve both the international LNG market and growing domestic LNG demand in Nigeria,” Verma said.
He said the investment was currently estimated at more than $3 billion, although the final project cost would depend on the outcome of ongoing feasibility studies and other development processes.
NIPCO Begins Feasibility Studies
Verma disclosed that NIPCO had been evaluating the proposed project for the past six to nine months and was currently undertaking preliminary technical, commercial, and feasibility assessments.
The assessments include upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic supply opportunities, shipping and logistics, project economics, and financing structure.
He explained that the final location would be determined after the feasibility studies, noting that NIPCO was assessing sites that would provide access to upstream gas resources, LNG processing facilities, marine transportation routes, and both domestic and international markets.
The proposed facility is expected to have a production capacity of approximately three million metric tonnes per annum, subject to the completion of feasibility studies, regulatory approvals, and a Final Investment Decision.
Project to Serve Domestic, Export Markets
Verma said NIPCO was also assessing the shipping and logistics infrastructure required to support the distribution of LNG to both export destinations and the Nigerian domestic market.
The project, if approved and developed, would expand NIPCO’s presence in the country’s gas value chain and add FLNG operations to its existing investments in the energy and infrastructure sectors.
He described NIPCO Group as an integrated energy and infrastructure company with investments spanning downstream oil and gas, natural gas distribution, compressed natural gas (CNG), liquefied petroleum gas (LPG), propane, pipeline infrastructure, logistics, retail, and hospitality.
According to Verma, the group has invested approximately $2 billion in Nigeria’s oil and gas sector over the years.
The investments, he said, cover pipeline infrastructure, CNG facilities, fuel retail outlets, AGO and PMS infrastructure, LPG and propane facilities, as well as logistics and distribution networks.
The presence of the group’s chairman and other senior executives at the press conference underscored the strategic importance attached to the proposed LNG project, which would represent a new area of operation for NIPCO after more than two decades of business activities in Nigeria.
