By Adedapo Adesanya
President Bola Tinubu has backed the implementation of a $5 billion Floating Liquefied Natural Gas (LNG) project in the country.
The President gave the backing when he received a group of joint venture partners made up of UTM FLNG, TECHNIP Energies, and JGC Corporation in his office, alongside Ambassadors of France and Japan, to Nigeria on Wednesday.
Addressing State House correspondents after the meeting with the President, the leader of the delegation and Group Managing Director of UTM FLNG, Mr Julius Rone, said that a $5 billion loan has been signed with Afreximbank for the implementation of the floating LNG project.
Mr Rone, who conveyed the President’s stance, said the project has the capacity to generate 7,000 direct jobs and produce 300,000 tons of LPG every year.
He further disclosed that it is the first time in Nigeria that an indigenous company will be involved in such a project that would contribute to the decarbonisation efforts in Nigeria.
The first floating LNG project in Nigeria, according to him, is expected to come on stream by the first quarter of 2026.
During the President Muhammadu Buhari administration, the project was expected to be completed in 2025.
The former president said that the project was in line with the vision of the Federal Government to transform Nigeria into a gas-based economy by 2030.
This, he noted, was part of the declaration of 2021 – 2030 as the decade of gas, adding that it was becoming a solid reality with the commencement of preliminary engineering of the LNG project.
The FLNG facility was touted as a step forward in the right direction for the country to develop, exploit and monetize its over 209 trillion cubic feet (tcf) of proven gas resources and a potential upside of 600 tcf of gas to ensure energy security, economic growth and the reduction in emissions.
When the construction of the FLNG facility is completed, it will have an LNG nameplate production capacity of 1.2 million metric tonnes per annum and a storage capacity of 200,000 cubic meters, as well as ancillary facilities to be located 60 km from the shore of Akwa Ibom State.
It was also noted will create value and improve the contributions of the oil and gas sector to Nigeria’s Gross Domestic Product (GDP).
According to market research analysts, the FLNG market is estimated to increase at a compound annual growth rate (CAGR) of 27.14 per cent, reaching $88.99 billion by 2024.
Dipo Olowookere