Nigeria's NNPC Signs Two LNG Deals for Local, Foreign Markets

(Reuters) — Nigeria's state oil firm NNPC Ltd said on Wednesday that it has secured two agreements to expand its LNG portfolio for both the domestic and international markets.

The deals were agreed on the sidelines of the COP28 climate talks in Dubai, underlining Nigeria's commitment to utilizing its huge natural gas resources to drive economic growth and enhance energy security, NNPC spokesperson Olufemi Soneye said in a statement.

One agreement, a memorandum of understanding (MoU) with Chinese company Wison Heavy Industry Co. Ltd is focused on developing a floating LNG project in Nigeria that will target the international market. The two companies pledged to work to reach an investment decision on the accord.

The second deal is a supply, installation, and commissioning agreement with SDP Services Ltd, an oil independent, for a 421-tonne-per-day LNG project to the domestic market.

"We are looking at a timeframe of 12 months from execution to the commissioning of the project," said Lawal Sade, head of NNPC's trading unit.

Nigeria, Africa's largest oil producer, also holds the continent's largest natural gas reserves, estimated at more than 200 trillion cubic feet. It is seeking investments to boost its domestic supplies and exports.

NNPC is working with investors to boost Nigeria's gas processing capacity and make it a key hub in West Africa in four years, CEO Mele Kyari said in October.

In July, NNPC signed an agreement with UTM Offshore to build a 1.5 metric tonnes per floating LNG plant.

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