Amidst high cost of fuel in the country, UTM FLNG, a Nigerian gas company has concluded plan to set up the first Floating Liquified Natural Gas (FLNG) facility in Nigeria and the very first being developed by an Indigenous private African company, as they visited President Bola Tinubu to sought his support to the implementation of a $5 billion floating Liquefied Petroleum Gas (LNG).
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 on Wednesday at the Presidential Villa, Abuja.
Speaking to State House Correspondents after the meeting, leader of the delegation and Group Managing Director (GMD) of UTM FLNG, Julius Rone, disclosed that the multi-floating LNGs are being implemented with a $5 billion loan from AFRIEXIM Bank.
Also at the meeting were the Ambassador of France to Nigeria, Ms Emmanuelle Blatmann, and Ms Hiromi Otuski Deputy Ambassador for Japan to Nigeria.
Rone, said he was at the Presidential Villa to brief the President on the import of the facility noting that the project will serve as a legacy project under the Tinubu administration in the quest to revitalize the nation’s economy, rejuvenate the productive sector, create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.
He said Tinubu has assured that his administration would provide full support for the project because it fits into his programme to revive the economy and provide more jobs.
Rone revealed that the project has the capacity to produce 300,000 tons of LPG per year and would provide 7,000 direct jobs for Nigerians.
He said it was the first time in Nigeria that an indigenous company would be involved in such project that would contribute to decarbonization.
It would be the first floating LNG project in Nigeria and expected to come on stream in the first quarter of 2026, boost production and crash the cost of gas for domestic, auto and industrial use in the country, he said.
The facility which will be the first of its kind in Nigeria also targets to leapfrog the national economy by producing an annual 1.5 million tonnes of Liquified Natural Gas (LNG) for export as well as 300,000 LPG metric tonnes for domestic market aimed at lowering and stabilising prices of gas, while creating thousands of jobs and investment opportunities in Nigeria.
The UTM Boss who said he had a very fruitful discussion with President Tinubu applauded the President for his strategic policies, commitment and efforts towards stimulating the economy, a disposition he said further motivated the company in its drive to establish the facility in the country.
He explained that the FLNG facility will be anchored offshore in Akwa Ibom State in about 60m water depth.
“We believe the project is coming at the right time in line with your Renewed Hope agenda of leapfrogging Nigeria’s socio-economic development by sustainably developing our enormous gas resources.
“When completed in Q4 2026, the facility will produce on annual basis, 1.5 million tonnes of LNG for export, 300,000 metric tonnes of LPG for domestic market (DLPG) and some quantities of condensate.
“300,000 metric tonnes of LPG production which will be dedicated to domestic market (DLPG) represents 25 per cent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for auto gas and other industrial purposes among others. Moreover, about 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.
“Also, LPG addresses deforestation, helps reduce mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating flaring of Associated Gas, Nigeria can meet its Climate Change goals and this project is one such enabler”, he told the President.
He commended the Tinubu administration for its commitment in providing access to clean, accessible, affordable, available and abundant energy for all Nigerians and reiterated UTM’s commitment to partner the Federal Government to realise this agenda.
According to Dr. Rone, Afreximbank is facilitating the financing of the project with financial closure envisaged for Q4 2023.
UTM FLNG Limited, a subsidiary of UTM Offshore Ltd, is a Special Purpose Vehicle created to actualise the project.