The US government, through the US Trade & Development Agency (USTDA), has finalized a deal with Powergas Nigeria to fund a feasibility study—valued at approximately $1.23 million—for a mini-liquefied natural gas (LNG) plant in Nigeria's Niger Delta. This initiative supports President Bola Tinubu's administration's goal of maximizing domestic gas use and expanding exports.

The proposed plant would have a nameplate capacity of 200 tonnes per day, consisting of four trains, and would be located at one of two existing Powergas compressed natural gas (CNG) plant sites: Ebedei in Delta State or Ogbele in Rivers State. The study will assess technical and financial viability, develop an implementation plan, and identify US suppliers for critical equipment such as liquefaction systems, electrical controls, and engineering services.

The project aims to supply gas to northern Nigeria's growing industrial sector via a 'virtual pipeline' trucking network, addressing energy needs in areas lacking traditional pipeline infrastructure. USTDA deputy director Thomas Hardy highlighted that the project addresses critical energy security needs in a region where underinvestment has hindered economic opportunity, while also opening opportunities for America's LNG industry. Powergas's head of strategy, Abiodun Oseni, noted that LNG represents the next frontier for the company, building on its expertise in Nigeria's CNG value chain, which has delivered over 14 billion cubic feet of gas from five plants. Companies interested in conducting the feasibility study have until August 7 to contact USTDA.