The U.S. Trade and Development Agency (USTDA) is supporting the deployment of U.S. liquefied natural gas technology that will strengthen energy access and security in northern Nigeria.
According to a statement on Friday by the U.S. Department of State: “Today, USTDA announced an agreement with Nigerian energy company Powergas Nigeria Ltd (Powergas) to fund a feasibility study for a small-scale liquefied natural gas (LNG) plant in southern Nigeria that will deliver a reliable energy source to northern Nigeria’s industrial sector and remote communities, positioning American companies to supply cutting-edge LNG infrastructure.”
USTDA’s Deputy Director, Thomas R. Hardy, said: “USTDA is helping catalyze 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. At the same time, our support for this project will open new opportunities in Nigeria for America’s LNG industry, strengthening U.S. global competitiveness in the energy sector.”
The statement noted that “Northern Nigeria’s growing industrial sector is driving demand for reliable energy solutions. One such solution is the delivery of LNG via “virtual pipeline” trucking networks to areas without traditional gas pipeline infrastructure. The USTDA-funded feasibility study will assess the technical and financial aspects of a new LNG plant that will convert gas to LNG, develop an implementation plan, and identify U.S. suppliers for critical equipment including liquefaction systems, electrical controls, and engineering services.
“By providing the groundwork needed to secure project financing, USTDA’s support will help unlock significant procurement opportunities for American companies in Nigeria’s expanding energy market.
“USTDA-funded programming is carried out by U.S. companies. Businesses interested in submitting proposals for the feasibility study should visit www.ustda.gov/work/bid-on-an-overseas-project.”
Abiodun Oseni, Powergas Head of Strategy said: “At Powergas, we have built a market-leading expertise in Nigeria’s compressed natural gas value chain from compression to virtual pipeline distribution. LNG is our natural next frontier, seeing that it allows us to go further and serve even more remote industries and communities Pan-Nigeria. That’s why USTDA’s catalytic support is so critical as it de-risks our strategic leap and accelerates project bankability. We are deliberately keen in evaluating and adopting U.S. innovation, engineering, and liquefaction systems to ensure world-class execution, while delivering cleaner, reliable energy to power Nigeria’s growth.”
The U.S. Trade and Development Agency is the U.S. government’s first mover on critical infrastructure development in emerging markets, advancing the shared strategic priorities of the United States and our overseas partners while creating opportunities to deploy trusted U.S. solutions. USTDA funds the upfront technical work that accelerates the development of infrastructure projects, helping them attract the financing they need for implementation and procurement of U.S. goods and services.
