Adedapo Adesanya
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited, UTM Offshore, and the Delta State Government on Tuesday in Abuja signed the groundbreaking shareholders agreement to develop Nigeria’s first Floating Liquefied Natural Gas (FLNG) project.
The partnership marks a significant step towards eliminating energy poverty and advancing the continent’s gas monetization agenda.
The UTM FLNG project is the first of its kind to be developed by an indigenous private company in Nigeria, reflecting the strategic importance of the project and its impact on national energy security.
UTM Offshore will take a 72 per cent equity share in the project, with NNPC and Delta State holding the remaining 20 per cent and 8 per cent, respectively.
The planned FLNG vessel is set to produce 176 million cubic feet of gas per day from the Yoho Field and will help boost domestic gas utilisation in Nigeria. It will feature a capacity of 1.8 billion metric tons per year for domestic use and export and its Final Investment Decision – valued at $2.1 billion – is expected to be taken before Q1 2024, with construction to begin next year.
Speaking to the economic benefits of the project, the Governor of Delta State, Mr Sheriff Oborevwori, said, “Of particular interest to Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socio-economic development of our great state.
“The project will also help to mitigate the environmental hazards in Niger Delta by reducing gas flaring… Another benefit we envisage with this project is that it will create job opportunities for our youths.”
Upon completion, LPG will become increasingly accessible to the Nigerian market, thereby reducing the costs of the product while improving health, environmental protection, and employment across the country.
Nigeria has over 200 trillion cubic feet of proven gas reserves, resources which hold immense opportunities for the country and wider region.
Business Post understands that the FLNG facility is expected to be complete by 2026 and comprises a turret mooring system, gas pre-treatment modules, Liquefied Natural Gas (LNG) production modules, living quarters, self-contained power generation and utilities alongside storage and offloading.
Last year, it was reported that UTM Offshore inked the Front-End Engineering and Design contract with Kellogg Brown and Root, Japan Gas Corporation, and Technip Energies.
The project is estimated to provide direct employment for 3,000 Nigerians and indirect employment for an additional 4,000 people.
