FG Opens New Opportunities with LTC to UTM FLNG, Despite Economic Challenges

Amid current economic challenges, the President Bola Tinubu-led federal government at the weekend opened a new prosperity gateway for the nation as it granted UTM FLNG Limited a Licence-to-Construct (LTC) for Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility.
The 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.

It is expected to leapfrog the national economy by ensuring availability of gas at lower cost, generate massive employment and multi-million Naira business opportunities for Nigerians and other nationals.
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 Oil Mining Licence (OML) 104 Yoho Field.

The issuance of the LTC to UTM FLNG by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) came as a major fulfilment of the president in July 2023 to give all necessary support to the Nigerian firm to ensure the actualisation of the landmark gas project.
Speaking at the event, Group Managing Director of UTM FLNG Limited, Dr. Julius Rone, expressed profound gratitude to the president for his “unwavering support to the gas sector and the UTM FLNG project in particular.
Rone stated that the project aligned with the president’s promise to develop Nigerian gas resources as a source of sustainable energy and economic development for the country.

He said the facility will also provide about 7,000 jobs in addition to value creation along the LPG supply chain. Part of the gains, he said, is that the facility will also address deforestation while lessening environmental hazards by reducing flaring of associated gas in the country.
The UTM boss acknowledged the collaborative efforts of the NMDPRA and the dedication of all stakeholders involved in bringing the project to fruition. He also thanked the Group Chief Executive Officer of the Nigeria National Petroleum Company Limited (NNPC), Mallam Mele Kyari for the support from the national oil company, for believing in UTM Offshore to deliver on the project.

The UTM FLNG boss stated that the journey toward the 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.

Speaking at the event at the NMDPRA headquarters in Abuja which was attended by key industry players, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, Chief Executive Officer of NMDPRA, Farouk Ahmed, he 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.
Recall that 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 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.

Source: thisdaylive.com

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