Golar, NNPC move ahead with Nigeria FLNG development

Golar LNG and Nigeria National Petroleum Corporation (NNPC), the state-owned oil and gas company of Nigeria, have forged a partnership aimed at the joint development of specific gas fields within Nigeria, Golar said on August 10 in its quarterly results report. This collaboration marks an expansion of their initial cooperation, which was formalised through a memorandum of understanding (MoU) signed earlier in the year.

The primary focus of this strategic collaboration is the utilisation of floating liquefied natural gas (FLNG) technology for the development of these gas fields. FLNG technology enables the extraction, liquefaction, and storage of natural gas directly at the offshore production site, providing a flexible and efficient means of processing and transporting natural gas to markets.

“Strong progress with the potential deployment of Golar’s FLNG vessels to various gas fields in Nigeria has been made since signing the MoU with NNPC in April,” Golar said.

Golar LNG and NNPC have now entered into a further agreement by signing heads of terms on August 1. This new agreement outlines an integrated contractual framework that lays the groundwork for the collaborative development of the specified gas fields, with a specific emphasis on potential FLNG projects. The relevant fields could fully utilise FLNG Hilli following the end of her current contract in mid-2026, or utilise a MKII FLNG.

This development aligns with a transition that NNPC underwent recently, transforming into a limited liability company. The chair of its board, Nigerian senator Margery Chuba-Okadigbo, told NGW on the sidelines of the Gastech conference in Milan in September that the transformation would lead to faster decision-making and improved confidence in the organisation among stakeholders and international partners.

Nigeria, already a significant player in the African LNG export landscape, is further enhancing its role through endeavors like these.