U.S. Agency Backs LNG Project To Boost Energy Access In Northern Nigeria
Nigeria’s push to expand reliable energy access to industries and underserved communities in the North has received a boost as the United States Trade and Development Agency (USTDA) moves to support the deployment of advanced liquefied natural gas technology in the country.
USTDA announced on Friday that it had signed an agreement with Nigerian energy company Powergas Nigeria Ltd to fund a feasibility study for a small-scale liquefied natural gas (LNG) plant in southern Nigeria.
The proposed facility will supply LNG to industries and remote communities in northern Nigeria through “virtual pipeline” trucking networks, particularly in areas without conventional gas pipeline infrastructure.
USTDA Deputy Director Thomas R. Hardy said the initiative would promote private sector-led growth, address critical energy security needs and create opportunities for American companies to participate in Nigeria’s expanding energy market.
According to the agency, the feasibility study will assess the technical and financial viability of the proposed LNG plant, develop an implementation plan and identify suppliers for critical equipment, including liquefaction systems, electrical controls and engineering services.
Head of Strategy at Powergas, Abiodun Oseni, described LNG development as the company’s next frontier after building expertise in Nigeria’s compressed natural gas value chain.
Oseni said USTDA’s support would help reduce project risks, accelerate bankability and facilitate the deployment of advanced technology to provide cleaner and more reliable energy to industries and communities across Nigeria.
The project is expected to strengthen energy security, stimulate industrial growth and expand access to reliable energy in parts of northern Nigeria where inadequate infrastructure has constrained economic opportunities.
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