- Nigeria grants UTM FLNG a license to build its first Floating Liquefied Natural Gas (FLNG) facility, boosting its global gas market presence.
- The FLNG plant, located offshore Akwa Ibom, will produce 2.8 million tons of LNG, LPG, and condensate annually, targeting completion by 2028.
- The project aims to lower gas costs, create jobs, and enhance Nigeria’s economy while utilising its vast natural gas reserves.
Nigeria moves forward with the construction of its first Floating Liquefied Natural Gas (FLNG) facility, as President Bola Ahmed Tinubu’s administration grants UTM FLNG Limited a “License to Construct” (LTC). This decision positions Nigeria to enter the global gas market competitively.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued the LTC to UTM FLNG last Friday, fulfilling President Tinubu’s July 2023 promise to accelerate the project. During a meeting with UTM’s management and foreign partners at the State House, Abuja, the President assured us of his commitment to clearing obstacles for timely completion.
The UTM FLNG plant, located offshore Akwa Ibom State, will produce 2.8 million tons per annum (MTPA) of LNG, LPG, and condensate from re-injected gas at the OML 104 Yoho Field. The facility aims to harness Nigeria’s 209 trillion cubic feet of natural gas for domestic use and export.
Industry analysts predict the project will boost Nigeria’s economy by lowering gas costs, creating jobs, and driving new business opportunities. The project targets completion in 2028, with gas production slated to begin in 2029.
At the license signing ceremony, the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo commended the achievement. NMDPRA Chief Executive Officer, Engr. Farouk Ahmed highlighted how the project aligns with the government’s gas expansion plans under the Petroleum Industry Act (PIA) 2021. He emphasised President Tinubu’s focus on midstream gas sector growth, affirming the government’s ongoing support for the project.
Dr. Julius Rone, Group Managing Director of UTM FLNG, thanked President Tinubu for consistently supporting the gas sector and the FLNG initiative. He reiterated that the project reflects the President’s goal of utilising Nigeria’s gas resources for sustainable energy and economic development.
Rone acknowledged NNPC Limited’s contributions and thanked Group Chief Executive Officer Mallam Mele Kyari for believing in UTM Offshore. “This license marks our collective commitment to excellence and collaboration,” Rone stated.
UTM FLNG began its journey in 2019 with concept studies. The company completed the pre-FEED phase in June 2021 and the FEED phase in October 2023. Now, UTM FLNG enters the Engineering, Procurement, and Construction (EPC) phase. The company promises to conduct its operations with integrity, sustainability, and respect for local communities and the environment.
The FLNG facility significantly advances Nigeria’s gas industry and opens new opportunities in the global energy market. As the project progresses, Nigeria aims to establish itself as a leading natural gas exporter, driving economic growth, creating jobs, and improving energy access.
With the completion of the FLNG project, Nigeria stands poised to transform its gas sector, expand its role in the global energy transition, and strengthen its economy.