UTM Offshore, NNPC and Delta State Govt. to develop Nigeria’s first indigenous floating LNG project
UTM Offshore and the Nigerian National Petroleum Corporation (NNPC) have joined forces with the Delta State Government to develop Nigeria’s first indigenous floating LNG project. This partnership is a major step forward for the project, with the Delta State Government securing an 8% share, NNPC owning 20%, and UTM Offshore holding the remaining 72%.
Governor Sheriff Oborevwori of Delta State emphasized the strategic importance of the project to the national economy, highlighting that Delta State alone possesses 40% of Nigeria’s proven gas reserves. This investment is a testament to the state government’s belief in the project’s potential.
Excitingly, Governor Oborevwori expressed optimism that construction will commence in the coming year. This development aligns with the vision of UTM’s Group Managing Director, Julius Rone, who sees the signing ceremony as a significant milestone in realizing Nigeria’s first indigenous FLNG.
Rone further revealed that the final investment decision (FID) for the project is expected to be made before the end of the first quarter of 2024. This timeline demonstrates the commitment and progress being made towards bringing this groundbreaking initiative to fruition.
The agreement with Delta State builds upon the earlier deal signed by NNPC and UTM Offshore, which paved the way for the construction of Nigeria’s first indigenous floating LNG project. With the support of $5 billion from the African Export-Import Bank (Afreximbank), this project, capable of producing 1.5 million tonnes per annum (mtpa), is considered a vital endeavor for Nigeria’s future.
