Oil & Gas

Africa's largest gas reserves are banking on a new liquefied natural gas (LNG) project to tap into vast resources and achieve economic prosperity.

The nigerien national oil corporation (NNBC) has inked a deal with norway's golar LNG for the construction of a new floating liquefaction plant.

According to the washington-based oil and gas countries database of the specialized energy platform, nigeria boasts gas reserves exceeding 200 trillion cubic feet of natural gas, making it africa's largest, yet lacking the necessary investments for production escalation.

Liquefaction vessels serve as the linchpin of LNG exports; despite their hefty price tag, they offer swift market access and flexibility compared to gas pipelines.

Although nigeria claims the title of Africa's leading crude oil producer, associated gas is squandered through flaring, missing out on a chance to generate revenue and earn foreign exchange through exports.

The new liquefaction plant, slated off the coast of the oil-rich niger river delta, is set to commence production in 2027.

A press release from the nigerian petroleum corporation, posted on its website, applauds the agreement with Golar as "another significant milestone towards gas investment," in line with president paula ahmed tinubu's vision to ramp up gas investment for national economic prosperity.

The agreement outlines plans to harness between 400 and 500 million cubic feet of gas per day for the production of liquefied gas, liquefied petroleum gas, and condensate.

Project partners pledge to finalize the investment decision before the year's end (2024), marking a notable stride towards maximizing Africa's largest natural gas reserves.