NNPC Inks Contact with UTM Offshore to Boost Gas Market in Nigeria

In an effort to expand the gas market and increase consumer access to the affordability of cooking gas, the Nigerian National Petroleum Company (NNPC) Limited inked a contract with UTM Offshore Limited (UTMOL).
The parameters of the NNPC’s 20% equity commitment to the UTM FLNG Project were set out in the Heads of parameters Agreement, which was signed on Wednesday.
The deal signing event, which took place at the NNPC corporate headquarters in Abuja, is a cooperative effort between the 2 businesses to deliver, according to a statement released on Thursday.
The agreement, according to Julius Rone, Group Managing Director of UTM Offshore Limited, is evidence of UTMOL’s dedication to assisting in lowering and stabilising the price of cooking gas.
He cited a cleaner environment, chances for investment, and millions of opportunities for Nigerians to find direct and indirect jobs as the advantages of the deal.
“Final Investment Decision is expected to be taken in the fourth quarter of 2023 with planned Project start-up in the fourth quarter of 2026.
“When completed, it will produce 1.7mmtpa of LNG and 300,000 metric tons of LPG (cooking gas) which will be fully dedicated to the domestic market.
“The project is estimated to provide direct employment for 3,000 Nigerians and indirect employment for an additional 4,000 people.
“The LPG produced will help bring down the price of cooking gas, improve the socioeconomic well-being of Nigerians, and reduce deforestation, gas flaring and its attendant carbon emission.’’
Mele Kyari, the Group Chief Executive Officer of NNPC, spoke at the event and declared that the project was crucial for the country and that it needed to be encouraged to succeed at all costs.
He expressed his faith in the company’s competence and Rone’s leadership to successfully complete the project, noting that NNPCL’s investment in it is evidence of that.
We cannot commercialise this if it is not taken out, and we cannot also pull it out if we do not invest in it’, said Mohammed Ahmed, executive vice president for Gas, Power, and New Energy at NNPC. We need to pool resources in order to commercialise these gas assets.
“We have demonstrated that by signing up to 20 per cent and we will do whatever it takes to ensure that this project is executed.”

Source: Allnews Nigeria

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