The Nigerian National Petroleum Company Limited and UTM Offshore Limited, on Thursday, signed a Heads of Terms agreement for the construction of Nigeria’s first indigenous 1.5 million tonnes per annum Floating Liquefied Natural Gas project.
UTM Offshore, a Nigerian marine and services group, had signed a memorandum of understanding with the African Export-Import Bank in December 2021 to raise $2bn for the development of Nigeria’s first floating liquefied natural gas project.
Speaking at the HoT agreement signing in Abuja, on Thursday, NNPCL’s Group Chief Executive Officer, Mele Kyari, who described the project as a ‘must-do’ initiative for Nigeria, said the oil company was ready to secure gas feedstock towards the project.
The Group Managing Director, UTM Offshore, Julius Rone, said he was delighted with the partnership with NNPCL.
He said the agreement was a milestone achievement that showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector.
Rone said the facility would significantly cut down on gas flaring and support the country’s commitment to reducing carbon emissions.
According to him, “the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.”
The Executive Vice President, Gas, Power and New Energy, NNPCL, Mohammed Ahmed, said the project aligned with the company’s goals of ensuring energy availability, affordability and sustainability, while also generating revenue through exports.
During the MoU signing between UTM and Afrexim in Abuja for UTM to raise $2bn for the floating gas project, partners in the deal had explained in a statement that “the agreement paves the way for additional collaboration between UTM Offshore and the Afreximbank to support a future final investment decision on UTM’s FLNG project.”
The statement stated that UTM had been studying and conceptualising the development of an FLNG in Nigeria since 2020.