US backs LNG technology deployment to boost energy access in Nigeria

The United States government has stepped up support for Nigeria’s energy sector with funding for a feasibility study that will pave the way for the deployment of U.S. liquefied natural gas (LNG) technology aimed at expanding energy access and strengthening energy security in Northern Nigeria.

The support, announced on Friday by the U.S. Trade and Development Agency (USTDA), is part of an agreement with Nigerian energy company Powergas Nigeria Ltd to assess the viability of establishing a small-scale LNG plant in southern Nigeria. The proposed facility is expected to supply liquefied natural gas to industries and remote communities across northern Nigeria through virtual pipeline trucking networks.

The agency said the initiative would help bridge infrastructure gaps that have constrained economic development in the region while creating opportunities for American companies to supply advanced LNG equipment and engineering services.

USTDA Deputy Director, Thomas R. Hardy, said the project demonstrates the agency’s commitment to promoting private sector-led growth through innovative U.S. energy technologies.

“USTDA is helping catalyse private sector-led growth through the use of innovative U.S. energy technology,” Hardy said.

“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.”

According to the agency, the feasibility study will examine the technical and financial viability of the proposed LNG facility, prepare an implementation plan and identify U.S. suppliers for critical infrastructure, including liquefaction systems, electrical controls and engineering services.

It explained that the study is expected to provide the technical foundation needed to attract financing for the project while opening procurement opportunities for American companies seeking to participate in Nigeria’s expanding energy market.

The agency noted that northern Nigeria’s growing industrial base has increased demand for reliable energy, particularly in areas lacking conventional gas pipeline infrastructure.

It said transporting LNG by road through virtual pipeline networks offers an alternative means of delivering cleaner energy to industries and underserved communities.

Speaking on the partnership, Head of Strategy at Powergas Nigeria Ltd, Abiodun Oseni, said the company sees LNG as the next phase of its expansion after building expertise in Nigeria’s compressed natural gas value chain.

“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,” Oseni said.

“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 on 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 said businesses interested in carrying out the feasibility study are invited to submit proposals as part of its overseas project procurement process.

USTDA funds technical studies and project preparation activities designed to accelerate critical infrastructure development in emerging markets while creating opportunities for U.S. companies to supply goods and services.