President Tinubu Backs $5bn Floating LNG Project To Develop Gas Resources

President Bola Tinubu says he will support the development of the country’s first floating liquefied natural gas (FLNG) facility.

Tinubu gave the assurance when he received a group of joint venture (JV) partners, led by Julius Rone, group managing director of UTM FLNG, at the presidential villa, Abuja.

The delegates were accompanied by Emmanuella Blatmann, ambassador of France to Nigeria, and Hiromi Otuski, deputy ambassador for Japan to Nigeria.

UTM FLNG Limited, a subsidiary of UTM Offshore Ltd, is a special-purpose vehicle created to actualise the project.

The $5 billion FLNG project is expected to create 7,000 jobs and is set to commence in the fourth quarter (Q4) of 2026.

Speaking to journalists after the meeting, Rone said Tinubu directed them to contact him through Femi Gbajabiamila, his chief of staff, if they experienced any obstacles that might threaten the project’s completion deadline.

“We are developing the first floating LNG in Nigeria in conjunction with the Nigeria National Petroleum Company (NNPC). This is the first time an indigenous company from Africa is taking on such projects. We have just gotten one of the best days in our transaction,” he said

“Mr. president has given us all the assurances and full support for this project. For us, we’re excited because Mr. president spoke very highly of the need to develop our gas resources and he believes in the floating LNG technology. And he assured us that there will be no stones left for us to deliver this project as planned and scheduled.

“So, we are happy that we secured Mr. president’s support for this project. And he assured us that anything that we will require to get this project off the ground, he will definitely give us 110 percent and my colleagues here can testify to that assurance that we got from Mr. president.

“Mr. president said there is no obstacle to hinder the delivery of this project. That we will have this project delivered is a must, not if we want to do it.”

Speaking on the capacity of the FLNG, Rone said the facility targets to increase the national economy by producing an annual 1.5 million tonnes of LNG for export as well as 300,000 LPG metric tonnes for the domestic market.

He explained that the FLNG facility will be anchored offshore in Akwa Ibom state in about 60 meters of water depth.

“When completed in Q4 2026, the facility will produce on an 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,” Rone said.

“[The] 300,000 metric tonnes of LPG production which will be dedicated to domestic market (DLPG), represents 25 percent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for autogas and other industrial purposes among others.

“Moreover, about 3,000 direct jobs and 4,000 indirect jobs will be generated in addition to value creation along the LPG supply chain.

Rone added that Afreximbank is facilitating the financing of the project.

Credit- The Cable


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