The Group Managing Director of UTM Offshore Floating Liquefied Natural Gas (UTM FLNG), Dr. Julius Rone, has commended President Tinubu for his commitment to advancing Nigeria’s gas sector.
This followed the Tinubu administration’s approval of License to Construct (LTC) to implement the country’s first Floating Liquefied Natural Gas (FLNG) facility.
Rone said at the weekend in Abuja that the project supports the president’s broader goal of harnessing natural gas as a sustainable energy source for national development.
He also acknowledged the support from the Nigerian National Petroleum Company Limited (NNPCL) and other key stakeholders, underscoring the collaborative efforts that made this milestone possible.
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Rone highlighted the journey of the project, which began with concept studies in 2019, followed by the pre-Front End Engineering Design (pre-FEED) phase in June 2021, and the completion of the FEED phase in October 2023.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) officially issued the LTC at the weekend in Abuja, fulfilling President Bola Tinubu’s July 2023 commitment to support UTM FLNG in realizing this groundbreaking project.
The landmark development positions Nigeria, Africa’s largest crude oil producer, to make significant strides in the global gas market.
The president had previously assured the company and its international partners of the government’s backing to eliminate any obstacles to the facility’s completion.
With a capacity of 2.8 million tons per annum (MTPA), the UTM FLNG plant will produce Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and condensate from re-injected gas at the OML 104 Yoho Field.
This venture is seen as a major boost to Nigeria’s energy sector, unlocking the country’s untapped 209 trillion cubic feet of natural gas reserves for both domestic use and export.
The project is expected to lower gas costs, create jobs, and generate significant economic opportunities for Nigerians.
At the LTC signing event in Abuja, attended by key industry players, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and NMDPRA’s CEO, Engr. Farouk Ahmed, it was emphasized that this initiative aligns with the government’s broader gas expansion goals outlined in the Petroleum Industry Act (PIA) of 2021.
Ahmed praised the project as a result of President Tinubu’s vision for expanding the Midstream Gas Sector and pledged continued government support for UTM FLNG’s operations.
The UTM FLNG project is now entering the Engineering, Procurement, and Construction (EPC) phase, with a commitment to uphold environmental and community standards.
The FLNG facility will be located offshore Akwa Ibom State, in Nigeria’s Niger Delta region, and is slated for completion by 2028, with gas production expected to begin the following year.
