The African Energy Chamber (AEC) has highlighted the signing of Nigeria’s first Floating Liquefied Natural Gas (FLNG) project as a significant step toward addressing the nation’s energy gap. The agreement was signed between UTM Offshore, the Nigerian National Petroleum Company Limited (NNPCL), and the Delta State Government in Abuja.
The FLNG project, developed by UTM Offshore, is the first of its kind by an indigenous private company in Nigeria, emphasizing its strategic importance and impact on national energy security. The project aims to eliminate energy poverty and advance Africa’s gas monetization agenda.
UTM Offshore will hold a 72% equity share in the project, with NNPC and Delta State holding 20% and 8%, respectively. The FLNG facility is expected to have a capacity of 1.8 billion metric tons per year for domestic use and export. The Final Investment Decision, valued at $2.1 billion, is expected before Q1 2024, with construction set to begin next year.
The project is anticipated to bring economic benefits, including job creation and environmental sustainability. Delta State Governor, Sheriff Oborevwori, emphasized the positive impact on socioeconomic development, environmental hazard reduction in the Niger Delta, and job opportunities for youths.
The AEC sees projects like the UTM FLNG as contributing to cleaner energy alternatives, reduced gas flaring, and local job creation. Gas monetization aligns with the AEC’s commitment to a Just Transition, allowing African nations to lead their resource development and utilize natural gas as a transitional energy source.
Nigeria, with the largest proven gas reserves in Africa (202 trillion cubic feet), seeks substantial investments across its natural gas value chain to expand the domestic gas network, boost gas-based industrialization, and eliminate gas flaring under its National Gas Expansion Programme launched in 2020.
