Nigeria’s energy gets a lift with first FLNG project
Chief Executive Officer of UTM Offshore, Dr. Julius Rone
Nigeria’s first Floating Liquefied Natural Gas (FLNG) project is underway.
Chief Executive Officer of UTM Offshore, Dr. Julius Rone, announced commencement of construction at an awards event in Lagos, after receiving the honour as Investor of the Year.
Rone described the development as a defining moment for Nigeria’s energy sector.
He attributed the project’s progress to an improved investment climate under President Bola Tinubu, noting incentives under Renewed Hope Agenda have unlocked private sector investments in gas.
“This year, we are moving into construction,” Rone said, saying the project has reached execution stage after years of planning, financing and regulatory approvals.
“This administration has created an enabling environment to encourage investors, particularly in gas,” Rone said.
He said the facility, to be located in Yoho Field, Oil Mining Lease (OML) 104, 60 kilometres offshore Niger Delta, would produce 1.5 million tonnes of Liquefied Natural Gas (LNG) yearly for export, with 300,000 tonnes of Liquefied Petroleum Gas (LPG) for domestic consumption.
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With 2.2 trillion cubic feet of gas reserves, the facility is expected to sustain operations for at least 20 years.
Rone said the project would reduce Nigeria’s dependence on imported cooking gas, stressing that domestic LPG supply remains one of the project’s core objectives.
“One quarter of LPG importation into Nigeria will stop, from this project alone, we will supply at least 300,000 metric tonnes yearly to support the domestic market. Instead of importing, we will become self-sufficient,” he said.
Beyond energy security, he noted that FLNG would create jobs, boost revenue and strengthen Nigeria’s economy.
The financial structure reflects strong international confidence in Nigerian-led energy initiatives. Afreximbank as lead financier mobilised $2 billion for Phase 1, with additional $3 billion for Phase 2, making the total $5 billion.
The ownership comprises UTM FLNG with 72 per cent equity, Nigerian National Petroleum Company Limited (NNPCL) with 20 per cent, and Delta State with eight per cent.
The project also secured partnerships with global engineering firms, JGC Holdings, Technip Energies and KBR, and has completed environmental and social impact assessments.
Project Advisor and board member of UTM FLNG, Sadeeq Mai-Bornu, said the award is well-deserved, noting the project would open the door for more FLNG developments.
“This is the first FLNG project in Nigeria, and once this one is done, more will come.” “It is an encouraging recognition, and more is expected of the firm,” Mai-Bornu said.
The Managing Director and Editor -in-chief of Sun Publishing Limited Onuoha Ukeh described Rone and other award recipients as “uncommon achievers” whose investments and resilience continue to drive national development beyond government policy frameworks.
