U.S. Backs LNG Project to Improve Energy Access in Northern Nigeria
The United States government is supporting a new liquefied natural gas (LNG) project aimed at improving energy access in northern Nigeria while creating business opportunities for American energy technology companies.
The U.S. Trade and Development Agency (USTDA) announced on Friday that it had signed an agreement with Powergas Nigeria Ltd to fund a feasibility study for a proposed small-scale LNG plant in southern Nigeria.
The proposed facility will process natural gas into LNG, which will be transported by road to northern Nigeria, where many communities and industries lack access to conventional gas pipeline infrastructure.
According to USTDA, the project is expected to strengthen energy security by supplying LNG through “virtual pipeline” trucking networks to factories, businesses and underserved communities.
USTDA Deputy Director Thomas Hardy said the initiative reflects the agency’s commitment to promoting private sector-led growth through the deployment of American energy technology.
“USTDA is helping catalyse private sector-led growth through the use of innovative U.S. energy technology. This project will help address critical energy security needs in a region where underinvestment in infrastructure has impeded economic opportunity,” Hardy said.
He added that the project would also create commercial opportunities for U.S. firms by enabling them to supply liquefaction systems, electrical controls, engineering services and other critical infrastructure.
The agency said the feasibility study would assess the technical and financial viability of the proposed LNG plant, develop an implementation roadmap and identify suitable U.S. suppliers for key equipment and services.
It added that the study would also help attract financing required to move the project into the implementation phase.
Powergas Nigeria described the initiative as a significant milestone in its expansion from compressed natural gas (CNG) into LNG distribution.
The company’s Head of Strategy, Abiodun Oseni, said Powergas had established itself as a key player in Nigeria’s CNG sector and viewed LNG as the next stage of its growth strategy.
According to him, the project will enable the company to extend cleaner and more reliable energy supplies to industries and communities in remote parts of the country.
Oseni noted that USTDA’s support would reduce investment risks, improve the project’s bankability and facilitate the adoption of American engineering expertise and liquefaction technology.
Nigeria has one of Africa’s largest proven natural gas reserves, but millions of households and businesses continue to face unreliable energy supplies due to inadequate gas transportation infrastructure.
Industry experts have identified small-scale LNG projects and virtual pipeline networks as practical solutions for delivering natural gas to off-grid industrial clusters and communities where conventional pipelines are not economically viable.
The initiative is also expected to strengthen U.S.-Nigeria commercial cooperation in the energy sector while supporting the use of natural gas as a transition fuel for industrial development.
