By Cross Udo, Abuja
Amidst the high cost of fuel in the country, a Nigerian gas company, UTM FLNG, has concluded plans to set up the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria and the very first being developed by an Indigenous private African company.
The FLNG will among other things, boost production and crash the cost of gas for domestic, auto, and industrial use in the country.
The facility which will be the first of its kind in Nigeria also targets to leapfrog the national economy by producing an annual 1.5 million tonnes of Liquefied Natural Gas (LNG) for export as well as 300,000 LPG metric tonnes for the domestic market aimed at lowering and stabilising prices of gas, while creating thousands of jobs and investment opportunities in Nigeria.
Group Managing Director of UTM FLNG, Dr. Julius Rone stated this after a crucial economy and investment-driven meeting with President Bola Ahmed Tinubu at the Presidential Villa, Abuja on Wednesday.
Rone, who said that he was at the Presidential Villa to brief the President on the import of the facility noted that the project will serve as a legacy project under the Tinubu administration in the quest to revitalize the nation’s economy, rejuvenate the productive sector, create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.
The UTM Boss who said he had a very fruitful discussion with President Tinubu applauded the President for his strategic policies, commitment, and efforts towards stimulating the economy, a disposition he said further motivated the company in its drive to establish the facility in the country.
He explained that the FLNG facility will be anchored offshore in Akwa Ibom State at about 60m water depth.
“We believe the project is coming at the right time in line with your Renewed Hope agenda of leapfrogging Nigeria’s socio-economic development by sustainably developing our enormous gas resources.
“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 the domestic market (DLPG), and some quantities of condensate.
“300,000 metric tonnes of LPG production which will be dedicated to the domestic market (DLPG) represents 25 per cent 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 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.
“Also, LPG addresses deforestation and helps reduce the mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating the flaring of associated gas, Nigeria can meet its climate change goals and this project is one such enabler”, he told the President.
He commended the Tinubu administration for its commitment to providing access to clean, accessible, affordable, available, and abundant energy for all Nigerians and reiterated UTM’s commitment to partner with the Federal Government to realise this agenda.
According to Rone, Afreximbank is facilitating the financing of the project with financial closure envisaged for Q4 2023.
UTM FLNG Limited, a subsidiary of UTM Offshore Ltd, is a Special Purpose Vehicle created to actualise the project.
*Tinubu pledges support for completion of Africa’s largest gas project
President Tinubu said the Federal Government would support Nigerian firm, UTM Floating Liquefied Natural Gas Limited, and its foreign partners for the timely actualisation of their gas project.
Speaking during an audience with the management of the company and its foreign partners, at the Presidential Villa in Abuja, Tinubu also pledged to remove all impediments to the timely completion of the facility.
He commended UTM FLNG Limited as well as its technical partners, Technip Energies of France, and its Japanese counterpart, JGC, for the initiative and partnership.
“Yes, we have an abundance of gas on the ground. However, the extractive industry needs the injection of your kind of partnership to be able to promote growth.
“It is a must for any government to support. Let me know if there are any bottlenecks, we will break them,” he said.
The President applauded the conglomerate for the massive investment which, he said, would promote growth and protection of the environment.
In her remarks, the French Ambassador to Nigeria, Emmanuelle Blatmann, described the project as a milestone, cementing the French presence in Nigeria’s economic space.
The facility, she said, would advance the economic diversification agenda of the Federal Government by tapping into the country’s abundant gas deposit.
When delivered, she said, the gas from Nigeria would be viable as an alternative source of gas for Europe.
Also in the delegation were the Japanese Deputy Ambassador to Nigeria, Ms Hiromi Otuski, Managing Director of JGC, Mr Naoki Noguchi, and Project Advisor, Mr Sadeeq Mai Bornu.
