Fed govt grants UTM FLNG license to build Nigeria’s first floating LNG plant
In a groundbreaking move, the federal government has granted UTM FLNG Limited a “License to Construct” Nigeria’s pioneering Floating Liquefied Natural Gas (FLNG) facility, marking a significant leap in the country’s energy sector.
The issuance of the LTC to UTM FLNG by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) last Friday came as a major fulfillment of the assurance by President Tinubu in July 2023 to give all necessary support to the Nigerian firm to ensure the actualization of the landmark gas project.
Recall that President Tinubu during an audience with the management of the company and its foreign partners at the State House, Abuja pledged to remove all impediments to the timely completion of the facility.
The UTM FLNG plant with a capacity of 2.8 million tons per annum (MTPA), will produce Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and condensate from re-injected gas at the OML 104 Yoho Field.
This project represents a significant step forward in Nigeria’s energy sector, enhancing the country’s ability to harness its untapped 209 trillion cubic feet of natural gas for both export and domestic consumption. This is expected to leapfrog the national economy by ensuring the availability of gas at lower cost and generate massive employment and multi-million Naira business opportunities for Nigerians and other nationals.
Speaking during the event, which was held at the NMDPRA headquarters in Abuja and was attended by key industry players, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, Chief Executive Officer of NMDPRA, Farouk Ahmed said the LTC signing ceremony “marks a significant milestone and aligns with the gas expansion ambitions of the government” as contained in the Petroleum Industry Act (PIA) 2021.
Farouk Ahmed noted that the FLNG is a yield of President Tinubu’s effort in the expansion of the Midstream Gas Sector, adding that the federal government under the Tinubu administration will continue to give all necessary support and a conducive environment for the firm to operate.
In his speech, Group Managing Director of UTM FLNG Limited, Dr. Julius Rone, expressed profound gratitude to President Tinubu, for his “unwavering support to the gas sector and the UTM FLNG project in particular.Related News
Dr. Rone stated that the project aligns with the President’s promise to develop Nigerian gas resources as a source of sustainable energy and economic development for the country.
The UTM boss acknowledged the collaborative efforts of the NMDPRA and the dedication of all stakeholders involved in bringing this project to fruition.
He also thanked the GCEO of the Nigeria National Petroleum Company Limited (NNPCL), Mallam Mele Kyari for the support from NNPCL for believing in UTM Offshore to deliver on the project.
“This achievement is not just a License to Construct; it is a testament to the collaborative spirit and commitment to excellence shared by our teams. The guidance and thorough review process by NMDPRA have been instrumental in navigating the complexities of this endeavour, ensuring compliance with industry standards, and fostering a productive partnership,” Rone said.
The UTM FLNG boss stated that the journey toward this milestone began with concept studies in 2019, followed by the pre-FEED phase in June 2021 and the successful completion of the FEED phase in October 2023.
He said: “UTM Offshore Limited, the main sponsor of the UTM FLNG Project, signed the Head of Terms with NNPC Limited in July 2023 and finalized the Shareholders Agreement with NNPC Ltd and the Delta State Government in December 2023.
“As UTM FLNG Limited moves forward into the Engineering, Procurement, and Construction (EPC) phase, the company remains committed to conducting operations with integrity, sustainability, and respect for the communities and environment in which it operates.”
The UTM FLNG Plant which is located offshore Akwa Ibom State in the oil-rich Niger Delta of the south-south region of Nigeria is expected to be completed and commissioned in 2028 with gas production projected to commence the following year.
