To strengthen energy access and security in northern Nigeria, US government agency, the US Trade and Development Agency (USTDA) is supporting the deployment of US liquefied natural gas (LNG) technology.

On July 7, 2026, the USTDA announced an agreement with Nigerian energy company Powergas Nigeria to fund a feasibility study for a small-scale LNG plant that will deliver a reliable energy source to northern Nigeria’s industrial sector and remote communities, positioning US companies to supply “cutting- edge LNG infrastructure”.

“The USTDA is helping catalyse private-sector-led growth through the use of innovative US energy technology. This project will help address critical energy security needs in a region where underinvestment in infrastructure has impeded economic opportunity,” USTDA deputy director Thomas Hardy stated last month.

The USTDA’s support for this project will create opportunities for the US’s LNG sector, further strengthening the country’s global competitiveness, he explained.

The organisation noted that northern Nigeria’s growing industrial sector is driving demand for reliable energy solutions, including the delivery of LNG through ‘virtual pipeline’ networks to areas without traditional gas pipeline infrastructure.

The USTDA-funded feasibility study will assess the technical and financial aspects of a new LNG plant that will convert gas to LNG, develop an implementation plan and identify US suppliers for critical equipment, including liquefication systems, electrical controls and engineering services.

“At Powergas, we have built a market-leading expertise in Nigeria’s compressed natural gas value chain from compression to virtual pipeline distribution,” Powergas Nigeria strategy head Abiodun Oseni commented.

LNG, he explains, is Powergas Nigeria’s “natural frontier”, as it allows the company to go further and serve even more remote industries and communities pan-Nigeria, which is why the USTDA’s catalytic support is so critical as it de-risks Powergas Nigeria’s ‘strategic leap’ while accelerating project bankability.

“We are keen in evaluating and adopting US innovation, engineering and liquefaction systems to ensure world-class execution, while delivering cleaner, reliable energy to power Nigeria’s growth,” Oseni concluded.