FLNG’s $1.8 million facility ushers in a new era for the Nigerian LNG industry

Following UTM Offshore’s agreement for the Front-End Engineering Design (FEED), of its LNG Floating project, Nigeria is about to experience a new era of Liquified Natural Gas, LNG sector growth.
On November 16 in London, an agreement between engineering companies KBR, JGC Corporation, and Technip Energies would launch work on Nigeria’s first FLNG project.
The $1.8 million FLNG facility from UTM Offshore is expected to start producing LNG before 2027, opening up new prospects.
UTM Offshore’s signing of the FEED will move the development of the enormous FLNG project from the fundraising stage to the implementation phase.
Parties involved, including NNPC Limited and ExxonMobil, in the OML 104 block development are seeking to expedite the development, exploitation, and monetization of stranded gas resources in order to ensure energy security, access to markets, and economic growth.
As the voice of the African energy industry, the African Energy Chamber (AEC) applauds UTM Offshore and its partners for reaching this significant milestone and actively supports the progress.
The AEC is convinced that African gas will play a significant role in releasing the world’s economies and the global energy market because of events including the Russian-Ukrainian War, rising energy demand, and policies related to the global energy transition.
“UTM Offshore CEO, Julius Rone has been a true champion of gas in Nigeria and Africa. His resilience, patience and outside the box thinking with a savviness to bring so many world-class companies and service providers to this project is extraordinary. We commend Afreximbank’s President Oramah for making this project a reality.
“The penetration of FNLG in Africa, which started in Cameroon and expanded to Angola and Mozambique and now to Senegal, Mauritania and Nigeria, highlights Africa’s commitment to unlocking the full exploitation of its gas resources. We believe UTM Offshore’s FLNG project development will not only open doors for energy security and GDP growth but will bring in world class technical know-how among the local people while creating long-term employment opportunities in line with Nigeria’s local content laws,” NJ Ayuk, the Executive Chairman of the AEC, said.
Furthermore, Nigeria, with its enormous gas reserves estimated to be above 270 trillion cubic feet (Tcf), is well-positioned to expand its supply to Europe. UTM’s FLNG facility will be an enabler of industry expansion and Nigeria’s best practice to address some of the critical gas industry challenges including cost, environmental sustainability, political instability, and regulatory uncertainty.
In a development that will maximize Nigeria’s gas monetization for economic and gross domestic product growth, ExxonMobil and NNPC, as feed gas suppliers, UTM Offshore, as the LNG producer, and Vitol, as the LNG buyer, will use the FLNG facility to exploit 2.2 Tcf of proven gas reserves within OML IO4 over a period of 20 years.

Source: Oriental News Nigeria

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