The African Energy Chamber (AEC) extends congratulations to UTM Offshore, the Nigerian National Petroleum Company (NNPC), and the Delta State Government for the signing of a groundbreaking shareholders agreement in Abuja to develop Nigeria’s first Floating Liquefied Natural Gas (FLNG) project. This marks a significant stride toward eliminating energy poverty and advancing the continent’s gas monetization agenda, aligning with the AEC’s commitment to African resource sovereignty.
The UTM FLNG project, a pioneering initiative by an indigenous private company in Nigeria, underscores its strategic importance and impact on national energy security. UTM Offshore will hold a 72% equity share, while NNPC and Delta State will own 20% and 8%, respectively. With a capacity of 1.8 billion metric tons per year for domestic use and export, the project, valued at $2.1 billion, is poised for a Final Investment Decision before Q1 2024, with construction commencing in the coming year.
Delta State Governor, Sheriff Oborevwori, highlighted the economic benefits, stating, “Of particular interest to Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socioeconomic development of our great state… The project will also help to mitigate the environmental hazards in Niger Delta by reducing gas flaring… Another benefit we envisage with this project is that it will create job opportunities for our youths.”
The UTM FLNG project aligns with the AEC’s commitment to a Just Transition, fostering cleaner energy alternatives, reduced flaring, and local job creation. With the largest proven gas reserves in Africa, Nigeria is seeking substantial investments across its natural gas value chain, aiming to expand its domestic gas network, boost gas-based industrialization, and eliminate gas flaring under the National Gas Expansion Program launched in 2020.
NJ Ayuk, Executive Chairman of the AEC, lauded the visionary leadership demonstrated by all parties, anticipating that this agreement will catalyze further collaboration and gas-focused developments in Nigeria and the wider West African region.
