en.Wedoany.com Reported - The U.S. Trade and Development Agency (USTDA) is supporting African compressed natural gas (CNG) producer Powergas in conducting a feasibility study for a small-scale liquefied natural gas (LNG) plant in Nigeria, with a tender process now open to U.S. companies.

According to the tender notice issued by USTDA, the study will cover LNG market assessment and offtaker engagement to help Powergas expand its customer base for the proposed LNG business, along with technical analysis and detailed engineering plans required for project implementation.

The proposal submission deadline is August 7, 2026, and the selected U.S. company will receive funding from the $1.227 million grant USTDA provided to Powergas.

Powergas is one of Africa's largest CNG producers and distributors, operating five CNG plants and having delivered over 14 billion standard cubic feet (scf) of compressed natural gas to industrial, commercial, and transportation customers. The company operates across multiple regions in Nigeria with a strong distribution network, serving clients that include several leading multinational corporations.

Given Nigeria's severely unmet electricity demand and growing interest from the local industrial sector in transitioning to bulk energy sources such as LNG, Powergas plans to develop a scalable small-scale LNG plant with a total nameplate capacity of 200 metric tons per day (mt/d), consisting of four 50 mt/d production trains. The plant's equipment and technology will include natural gas metering, conditioning, purification, and liquefaction processes.

USTDA stated that the plant will be located at one of Powergas's two existing sites: the Ebedei CNG plant in Delta State, or the Ogbele CNG plant in Rivers State.

Nigeria currently has the Bonny Island liquefaction plant operated by Nigeria LNG (NLNG), with six production trains and a capacity of 22 million tons per year, and NLNG is building a seventh unit. Last year, state-owned Nigerian National Petroleum Corp (NNPC) and its partners held groundbreaking ceremonies for five small-scale LNG plants in Nigeria. NNPC holds a 49% stake in NLNG. Among these five small-scale LNG plants, NNPC holds stakes in three (90% of Prime LNG, 50% of NGML/Gasnexus LNG, and 10% of BUA LNG), while Highland LNG and LNG Arete are being developed by other private companies. The total capacity of these small-scale plants is 97 million standard cubic feet per day (mmscf/d).