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Firm Gets Approval To Build Nigeria’s First Floating LNG Plant
Yinka Olajoyetan, Lagos
The Federal Government has approved the request of UTM Offshore Limited to build a 2.8 million tonnes floating LNG plant in Akwa-Ibom state.
It would be the first floating LNG project in Nigeria projected to cost over $2 billion and would be the first of its kind in Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority granted a licence to construct to the company for a liquefied natural gas (LNG) project, with an estimated production capacity of 2.8 million metric tons annually. This was disclosed on the NMDPRA’s official X handle.
The statement reads, “The NMDPRA issued a Licence to Construct (LTC) to UTM Offshore Ltd for the first Floating Liquefied Natural Gas (FLNG) in Nigeria.”
“The project, which is located in Akwa Ibom State, is aimed at processing 324 MMSCF/D of natural gas and producing LPG, condensate, and 2.8 million tonnes of LNG per year.”
The NMDPRA boss stated that UTM was originally granted a license in 2019 to build a facility with a capacity of 1.2 million tons per annum. However, this capacity was later increased to 2.8 million tons due to rising demand for LNG in the market.
Nigeria is seeking to reduce its dependence on oil by encouraging investments in its largely untapped gas reserves, estimated at 200 trillion cubic feet. Currently, a significant portion of the country’s gas output is either flared or re-injected into wells.
It was revealed that the plant, located offshore in Akwa Ibom state in the oil-rich Niger Delta, is projected to be commissioned in 2028, with the production of first gas expected a year later