Centrica Signs MoU to Develop Nigeria LNG Projects

Centrica, the parent company of British Gas, StatoilHydro and Consolidated Contractors Company, has signed a memorandum of understanding for participation in a consortium to assess the feasibility of developing LNG projects in Nigeria.

The agreement, for an initial 18-month period with an option to extend, would see Centrica and StatoilHydro each taking a 37.5% interest in the consortium, with Consolidated Contractors Company (CCC) holding 25%.

The feasibility study cost is expected to be about $10 million and will include analysis of potential feed gas, LNG plant locations – including local infrastructure, and end markets.

Centrica, which holds two exploration licences in Nigeria, is broadening its search for new sources of gas to supply its British Gas, European and North American customers.

Sam Laidlaw, CEO of Centrica, said: “As part of our broader search for new sources of gas to supply our customers, this agreement provides us with an option to assess the viability of developing LNG projects in Nigeria, working alongside experienced partners.”

StatoilHydro is a major gas player and Nigeria is an important element in its overall gas strategy. CCC has participated in the development of a range of major international oil and gas infrastructure projects, including petrochemical and LNG facilities.