Three international oil and gas firms have signed a memorandum of understanding (MoU) for the construction of a $5 billion floating liquefied natural gas (LNG) facility in Nigeria, The Punch newspaper said.

The facility is expected to process 176 million standard cubic feet of natural gas and condensate per day.

Minister of State for Petroleum Resources, Chief Timipre Sylva, announced the signing of the front-end engineering design contract by UTM Floating LNG Limited, JGC Corporation, Technip Energies & Kellog Brown & Root Engineering Companies for the development of the first floating liquefied natural gas facility in Nigeria.

African Export-Import Bank facilitated the signing of the MoU to raise funds required for the project, the minister said, adding that the contract will lead to more deals in Nigeria’s gas sector.

According to Sylva, the Petroleum Industry Act 2021 has improved the sector’s reputation in Nigeria, paving the way for new investments, jobs and economic diversification.

The number of offshore gas finds around the world is said to have surged in recent years, with LNG and floating LNG becoming more critical in helping the world’s future energy needs.