UTM Offshore FLNG Project Set to Transform Nigeria’s Gas Sector
By Patience Chat Moses
In the heart of Nigeria’s oil-rich Niger Delta, a ground-breaking endeavour is underway, poised to redefine the nation’s energy landscape. UTM Offshore Limited, an indigenous company, is spearheading Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility—a visionary project set to revolutionize the country’s energy sector.
At the Nigerian Content Tower in Yenagoa, Bayelsa State, a pivotal meeting unfolded between UTM Offshore Limited’s leadership, led by Group Managing Director, Mr. Julius Rone, and the esteemed Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe. The agenda? To secure critical investment and accelerate approvals necessary for the swift realization of this transformative FLNG project.
With a target completion date set for 2028, the UTM FLNG facility aims to produce a staggering 450,000 tonnes of Liquefied Petroleum Gas (LPG) annually— a feat that promises to significantly alleviate Nigeria’s pressing demand for cooking gas and diminish dependence on LPG imports.
In his address, Mr. Rone emphasized the project’s indigenous roots and its potential to unlock Nigeria’s offshore gas reserves, bolster energy security and facilitate technology transfer—a testament to Nigerian ingenuity and capability in executing projects of global acclaim. Giving a brief on the company, the Group Managing Director stated that UTM is a 100 per cent indigenous company, and it will promote domestic consumption of cooking gas, among other benefits.
In a bid to garner support and foster local participation, UTM Offshore Limited announced plans for roadshows in Uyo and Abuja, slated for April 2024. These roadshows will serve as platforms to showcase the myriad Nigerian Content opportunities within the FLNG project, encouraging broader engagement from domestic oil and gas services companies.
Providing further details, the Technical Manager of the FLNG, Engr. George Amara stated that the project’s target total production is 2.72 million tonnes per annum (MTPA), with LNG accounting for 1.81 MTPA, LPG taking up 0.45 MTPA, and condensate making up 0.25 MTPA.
Engr. George Amara outlined the ambitious production targets of the FLNG project, encompassing LNG, LPG, and condensate. With pivotal milestones achieved—including approvals for engineering design and local content development plans—the project is poised to leverage Nigeria’s fabrication yards for in-country activities, thus enhancing local capacity and driving industrial growth.
In response to UTM Offshore Limited’s appeal, Engr. Ogbe expressed the NCDMB’s steadfast commitment to supporting the project, pledging timely approvals and proactive assistance. Additionally, he emphasised the Board’s willingness to explore equity investment opportunities, signalling a strong endorsement of indigenous-led initiatives within Nigeria’s energy sector.
As Nigeria embarks on its journey towards energy sufficiency, energy security and economic resilience, it is expected that more collaborations between visionary entities like UTM Offshore Limited and supportive institutions such as NCDMB will unfold to serve as beacons of hope.
With the exit of multinational oil companies, we earnestly entreat that more indigenous companies will excavate and build a new and robust energy, oil and gas enterprises that will herald a new era of progress, innovation, and sustainable development—a testament to the power of indigenous ingenuity in shaping Nigeria’s energy future.
