The U.S. Trade and Development Agency (USTDA) is supporting the deployment of US Liquefied Natural (LNG) gas technology that will strengthen energy access and security in northern Nigeria.
This is disclosed in a statement issued on Friday by The United States Embassy in Abuja, stressing that the 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.
This, the statement added, 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 is helping catalyze private sector-led growth through the use of innovative US energy technology,” Thomas R. Hardy, USTDA’s Deputy Director, 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,” he added.
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 US 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, the statement said.