USTDA Funds Study for Small-Scale LNG Plant in Nigeria
USTDA has funded a feasibility study for a small-scale LNG plant in Nigeria that would supply industrial customers and remote communities through a virtual pipeline LNG distribution network.
(P&GJ) — The U.S. Trade and Development Agency (USTDA) has awarded funding for a feasibility study supporting development of a small-scale LNG plant in southern Nigeria, a project designed to supply liquefied natural gas to industrial customers and remote communities in northern Nigeria through a virtual pipeline distribution network.
The study, to be conducted for Nigerian energy company Powergas Nigeria Ltd., will evaluate the technical and financial feasibility of the proposed LNG facility, develop an implementation plan and identify U.S. suppliers for key equipment, including liquefaction systems, electrical controls and engineering services.
The project is intended to expand energy access in areas that lack traditional natural gas pipeline infrastructure by transporting LNG via truck to end users.
USTDA Deputy Director Thomas Hardy said the study is intended to support both Nigeria's energy needs and opportunities for U.S. LNG technology providers.
"This project will help address critical energy security needs in a region where underinvestment in infrastructure has impeded economic opportunity," Hardy said.
"At the same time, our support for this project will open new opportunities in Nigeria for America's LNG industry."
Powergas said the project would build on its existing compressed natural gas (CNG) operations by expanding into LNG distribution for customers beyond the reach of pipeline infrastructure.
"LNG is our natural next frontier, seeing that it allows us to go further and serve even more remote industries and communities," said Abiodun Oseni, the company's head of strategy.
According to Powergas, the feasibility study is expected to improve the project's bankability while supporting procurement of U.S.-manufactured liquefaction technology and engineering services.
USTDA said the study is intended to lay the groundwork for project financing and future deployment of U.S. LNG technologies in Nigeria's growing energy market.