London, June 20 (The Energy Circle) - The Nigerian National Petroleum Corporation (NNPC Ltd), Nigeria's state oil company, just reached an agreement with Golar LNG to install a floating liquefied natural gas (FLNG) unit in Nigeria's territorial waters. This significant step comes alongside a major investment by TotalEnergies and NNPC Ltd into the nation's gas infrastructure. The two entities plan to inject $550 million into constructing a gas processing unit in Rivers State, located in southern Nigeria.

As reported on June 19, this investment will also include the establishment of a pipeline to exploit the potential of the Ubeta gas field in OML 58. Once the final investment decision is made and development work is completed, the infrastructure is expected to enable stakeholders, including Shell and Eni, to harness 350 million standard cubic feet of gas per day.

The project aims to produce 10,000 barrels of associated liquids daily, thereby supporting Nigeria's often inconsistent oil production and enhancing domestic gas supply. With reserves estimated at 202 trillion cubic feet (Tcf), of which around 140 Tcf are recoverable, Nigeria possesses a substantial gas potential that the federal government is eager to monetise.