September 07, 2024
By Samuel Ogunsona
Nigeria’s UTM Offshore Ltd. has received approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority to construct the country’s first floating liquefied natural gas (LNG) facility.
The project, estimated to produce 2.8 million metric tons per year, aligns with the government’s gas expansion ambitions and aims to tap into Nigeria’s 206 trillion cubic feet of proven gas reserves.
The facility, located offshore in Akwa Ibom state, is expected to be inaugurated in 2028 and will produce LNG, petroleum gas, and condensate. UTM has secured funding and partnerships with various companies, including the African Export-Import Bank, JGC Corp., KBR Inc., Vitol Group, and Nigerian National Petroleum Co. Ltd.
This milestone marks a significant step towards harnessing Nigeria’s vast gas resources and reducing gas flaring and re-injection. The project’s success is crucial for the country’s energy transition and economic growth.
Rone, said: “It is a stranded gas that can only be monetized through a floating LNG technology. It will only add to Seplat’s balance sheet to say they have a ready-made buyer for a gas they have not developed.”
