Wednesday, May, 29, 2024 12:39:09

Golar LNG Ltd, a UK-based liquefied natural gas (LNG) shipping company, has reportedly announced that it is in talks with Nigerian government authorities to set up a power project in Nigeria.

Report cite, the company has even offered one of its vessels to help with the import of LNG into the nation, as it intends to branch out of its core business of LNG shipping & terminals. Moreover, the firm also owns 50% of the $1.7 billion Sergipe power project in Brazil where it intends to facilitate a Regasification unit and a Floating Storage unit to initiate LNG delivery.

According to a report by Reuters, the company is discussing the possibility of a fully integrated gas & power project in Lagos – a state located in the nation’s southwestern geopolitical zone.

The Chief Commercial Officer of Golar LNG, Robert Carter stated that the company is currently in talks with Nigerian authorities regarding the Lagos State power project. Carter further added that Golar intends to develop a terminal at the location that could include the use of some domestic LNG supplies.

For the record, power projects that use LNG typically tend to be comprised of an import terminal for LNG – like a FSRU vessel, infrastructures like pipelines for the regasification unit as well as a power plant that utilizes gas as a fuel source to generate electricity.

Reportedly, when questioned whether Golar would be facilitating a FSRU for the Nigerian plant, Robert Carter stated that the firm does not invest in a venture that does not showcase a Golar flag.

Lagos State’s Energy and Mineral Resources Commissioner stated that the government was in discussions with Golar to procure the company’s FSRU – Golar Spirit or the Golar Tundra. The government plans to guarantee the uptake of LNG to ensure that the 3,000 megawatt energy project is bankable.

According to reports, the financial information related to the matter has not been released yet as talks are underway and the terms of the deal are still under development.