The US Trade and Development Agency (USTDA) has signed a new agreement with Nigerian energy company Powergas Nigeria Ltd to help fund a feasibility study for a small-scale LNG plant. The deal will help to enhance the energy security of the Nigerian market in the North, as natural gas will be converted into LNG in the South and shipped to industrial consumers and off-grid areas without existing pipeline infrastructure.
This is a recognition of the emerging industrial sector of Northern Nigeria and the increasing need for reliable energy sources. LNG delivered through virtual pipeline trucking networks offers a practical solution for regions without fixed pipelines. The USTDA-funded study will evaluate technical and financial details, develop an implementation plan, and identify opportunities for U.S. suppliers to supply liquefaction systems, electrical controls, engineering services, and other critical equipment.
“USTDA is helping catalyze private sector-led growth through the use of innovative U.S. energy technology,” said Thomas R. Hardy, USTDA’s Deputy Director. “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.”
Powergas brings established experience in Nigeria’s compressed natural gas sector, including compression and virtual pipeline distribution. Company officials see LNG as the logical next step to reach more remote customers across the country.
“At Powergas, we have built a market-leading expertise in Nigeria’s compressed natural gas value chain from compression to virtual pipeline distribution,” said Abiodun Oseni, Powergas Head of Strategy. “LNG is our natural next frontier, seeing that it allows us to go further and serve even more remote industries and communities across 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 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.”
By laying the groundwork for future financing and development, the study is expected to generate significant procurement opportunities for American companies in Nigeria’s energy market. USTDA programming is implemented by U.S. firms, aligning with broader goals of advancing infrastructure partnerships and deploying trusted American solutions in emerging markets.
Businesses interested in submitting proposals for the feasibility study can find details here.
This latest USTDA effort builds on U.S. engagement to support energy infrastructure that accelerates economic growth and security in key African markets while creating export opportunities for American technology.
