President Bola Ahmed Tinubu has expressed his support for Nigeria’s first floating liquefied natural gas (FLNG) project, which will be undertaken by the indigenous company, UTM Offshore.
On July 5, 2023, President Tinubu welcomed a joint delegation comprising representatives from UTM Offshore, Technip Energies, JGC Corporation, and the French and Japanese ambassadors to Nigeria. During the meeting, Tinubu officially endorsed the $5 billion project.
Speaking to the press at the state house after the meeting, Julius Rone, the Group Managing Director of UTM Offshore, confirmed President Tinubu’s support for the project. The FLNG facility is expected to produce 300,000 tons of liquefied petroleum gas (LPG) annually and generate 7,000 direct jobs.
Rone further revealed that a $5 billion loan agreement has been signed with the African Export-Import Bank (Afreximbank) to finance the project. The FLNG facility is projected to become operational in the first quarter of 2026.
UTM Offshore is currently engaged in the development, design, and construction of the FLNG facility, which will have a liquefied natural gas (LNG) production capacity of 1.2 million metric tons per annum and a storage capacity of 200,000 cubic meters. The facility will be situated 60 kilometers offshore Akwa Ibom State, Nigeria, and will utilize natural gas feedstock from Oil Mining Lease (OML) 104.
The FLNG project also includes the development and financing of a facility with a capacity to process 176 million standard cubic feet per day (MMscf/d) of natural gas and condensate. This initiative aims to process associated gas that is currently being flared, thereby reducing carbon emissions and unlocking additional reserves for domestic and global markets.
