The U.S. Trade and Development Agency has announced support for a new liquefied natural gas project in Nigeria aimed at expanding reliable energy access to industries and underserved communities in the country’s northern region. The agency disclosed this in a statement on Friday, saying it had signed an agreement with Nigerian……
The U.S. Trade and Development Agency has announced support for a new liquefied natural gas project in Nigeria aimed at expanding reliable energy access to industries and underserved communities in the country’s northern region.
The agency disclosed this in a statement on Friday, saying it had signed an agreement with Nigerian energy company, Powergas Nigeria Ltd., to fund a feasibility study for a proposed small-scale LNG plant in southern Nigeria.
According to the USTDA, the project is expected to strengthen energy security by supplying liquefied natural gas to northern Nigeria through a “virtual pipeline” trucking network, providing an alternative to areas without conventional gas pipeline infrastructure.
USTDA Deputy Director, Thomas R. Hardy, said the initiative would support private sector-led growth while creating opportunities for American companies to deploy advanced LNG technologies in Nigeria.
“USTDA is helping catalyze private sector-led growth through the use of innovative U.S. energy technology,” Hardy said.
“This project will help address critical energy security needs in a region where underinvestment in infrastructure has impeded economic opportunity. At the same time, our support for this project will open new opportunities in Nigeria for America’s LNG industry, strengthening U.S. global competitiveness in the energy sector.”
The agency said the feasibility study would evaluate the technical and financial viability 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.
It noted that the study would also lay the groundwork for attracting financing for the project while opening procurement opportunities for American companies in Nigeria’s growing energy sector.
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Head of Strategy at Powergas Nigeria Ltd., Abiodun Oseni, described the project as a major step in the company’s expansion plans, saying LNG represents the next phase of its operations after establishing a strong presence in Nigeria’s compressed natural gas value chain.
“At Powergas, we have built a market-leading expertise in Nigeria’s compressed natural gas value chain from compression to virtual pipeline distribution. LNG is our natural next frontier, seeing that it allows us to go further and serve even more remote industries and communities Pan-Nigeria,” Oseni said.
“That’s why USTDA’s catalytic support is so critical as it de-risks our strategic leap and accelerates project bankability. We are deliberately keen in evaluating and adopting U.S. innovation, engineering, and liquefaction systems to ensure world-class execution, while delivering cleaner, reliable energy to power Nigeria’s growth.”
The USTDA added that all technical assistance funded under the programme would be carried out by U.S. companies, with interested firms invited to bid for the feasibility study.
