The Nigerian National Petroleum Company Limited (NNPCL) has signed a Heads of Terms (HoT) agreement with UTM Offshore Limited for the construction of the $5 billion worth, Nigeria’s first indigenous Floating LNG project, being part of the government’s efforts to boost the country’s energy security and promote the utilization of its abundant gas resources.
The agreement was confirmed in a statement by Garba Deen Muhammad, Chief Corporate Communications Officer NNPC Ltd., obtained by EnergyDay on Thursday. Mele Kyari, Group Chief Executive Officer, NNPCL in his remark described the Floating LNG project as a “must-do” initiative for Nigeria, expressing the national company’s readiness to secure gas feedstock towards the project.
Julius Rone, Group Managing Director, UTM Offshore Ltd in his comment expressed delight at the partnership with NNPC Ltd., stating that this milestone achievement showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector.
He further explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
Mohammed Abdulkabir Ahmed, NNPC Ltd.’s Executive Vice President, Gas, Power & New Energy also said the project aligned perfectly with NNPC Ltd.’s goals of ensuring energy availability, affordability, and sustainability while also generating revenue through exports.
EnergyDay’s check showed that the UTM FLNG Ltd, had earlier collaborated with Japan Gas Company (JGC) and Technip Energies Limited, for the kick off of the Front-End Engineering Design (FEED) FLNG facility in 2022.
The FLNG facility is expected to have an LNG nameplate production capacity of 1.2 million metric tons per annum and a storage capacity of 200,000 cubic meters, as well as ancillary facilities, and will be located 60 km from the shore of Akwa Ibom State.
UTM FLNG also signed a $5 billion Memorandum of Understanding (MoU) with the AFREXIM Bank for the financing of this project.