Golar LNG may set up power project in Nigeria

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Golar LNG, a liquefied natural gas shipping company registered in Bermuda, is in talks with Nigerian authorities about setting up a power project that could use one of its vessels to import liquefied natural gas (LNG).

Golar, which wants to expand beyond its core LNG shipping and terminals business, owns half of the $1.7 billion Sergipe power plant project in Brazil. The company will provide a floating storage and regasification unit (FSRU) at the Sergipe power plant to deliver LNG.

Robert Carter, Golar’s Chief Commercial Officer said the company was looking into a “fully integrated gas and power project” in the state of Lagos.

Carter told Reuters that “we’re in discussions with Nigerian authorities. We’re trying to develop a terminal there that could include the utilization of domestic LNG supplies”.

LNG-to-power projects tend to comprise an LNG import terminal such as an FSRU vessel; infrastructure such as pipelines for the regasified gas; and a power plant which uses the gas as feedstock to produce electricity.

Nigeria still needs to import fuels for vehicles and suffers power shortages due to poor infrastructure and chaotic governance of its energy sector, even when its a massive oil and gas producer.

Golar, which has a fleet of 16 LNG carriers and eight FSRUs, plans to expand into the broader LNG business by operating production facilities at the upstream end and participating in power projects at the downstream end.

 

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