Chinese contractor starts pre-FEED work for two Nigerian FLNG projects

In a move to boost Nigeria’s Liquefied Natural Gas (LNG) industry, Chinese contractor Wison New Energies has begun pre-front-end engineering and design (pre-FEED) work for two major FLNG projects.

This marks a crucial step forward in unlocking the potential of Nigeria’s vast natural gas reserves and boosting its energy export capabilities.

The two projects, each with a capacity of 3 million tonnes per annum (mtpa), are owned by Nigerian companies Ace Gas and FLNG and Transoceanic Gas & Power. Wison New Energies, formerly known as Wison Offshore & Marine, was awarded the contract following the signing of agreements and mobilisation funding disbursement.

This pre-FEED phase will involve detailed engineering studies and design validation to determine the technical feasibility and economic viability of the projects. It will also lay the groundwork for the subsequent stages of development, including final investment decisions and construction.

“Wison is excited to see the project has been officially entering into the pre-FEED stage. We’re confident that our FLNG EPCIC experience will guarantee a successful and efficient delivery. We are excited about advancing to the next stage in the near future,” Fan Jian, Nigeria country manager of Wison New Energies told Upstreamonline.com.

Transoceanic’s FLNG project is located offshore Pennington and is designed to supply 3 million tpa of LNG to the international market and deliver volumes of associated liquid petroleum gas (LPG) and condensate to the domestic market.

Ace Gas and FLNG’s project is located offshore Escravos and is also designed to supply 3 million tpa of LNG to overseas customers and LPG to the local market.

Commenting on the milestone, Chris Nwokolo, group chief executive from Ace Gas and FLNG said: “We’re excited about the collaboration with Wison New Energies. We thank our team, partners and the government for their efforts and support in ensuring this project becomes a reality.”

“This is a significant milestone for Wison New Energies and reinforces our commitment to providing cutting-edge solutions for the global energy sector,” Kunle Agboola, a Lagos-based energy expert said. “We are confident that these FLNG projects will play a key role in unlocking Nigeria’s vast natural gas potential and contributing to its economic growth.”

The projects are expected to have a significant economic impact on Nigeria, creating jobs, attracting foreign investment, and boosting government revenues. They will also help to diversify the country’s energy mix and reduce its dependence on oil.

“The development of these FLNG projects is a positive step for Nigeria’s energy sector and aligns with the country’s national gas development strategy,”

. “We are confident that these projects will bring significant benefits to the country and its people.”

The commencement of pre-FEED work for these two FLNG projects comes amidst a growing interest in LNG as a cleaner and more sustainable alternative to traditional fossil fuels.

Data gleaned from the National Bureau of Statistics (NBS) showed that Nigeria earned N2.85 trillion from the exportation of LNG in 2022 and has earned N2.28 trillion in the first nine months of 2023.

In March 2021, former President Muhammadu Buhari proclaimed the 2020s as Nigeria’s ‘decade of gas,’ signalling a deliberate shift in the government’s focus towards utilising gas as the primary fuel to propel the nation’s industrial ambitions.