The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a ‘Licence to Construct’ to UTM Offshore Limited for the development of a 2.8 million tonnes per annum Floating Liquefied Natural Gas facility.
The Minister of State for Petroleum Resources(Gas) Ekperikpe Ekpo, who witnessed the epoch event, the historic project, the first of its kind in Nigeria, aligns with the government’s ongoing efforts to boost gas production, distribution, and utilisation under the Decade of Gas Initiative.
“Today is a significant day in the life of the Ministry of Petroleum Resources, Gas,” Ekpo declared, emphasising the importance of the FLNG project to the nation’s energy future. Bringing greetings from the President, who was returning from an official trip abroad. I had to cut short my stay in China to come back for this very important event. I am going to witness the handing over of licenses to UTM Energy to operate. It will take up to 2.8 million tonnes of energy. And from what the Authority Chief Executive has said, this is the first in Nigeria.”
Indeed, the floating facility, to be constructed offshore, is seen as a critical component of Nigeria’s ambitious gas expansion plans.
Ekpo reiterated the administration’s commitment to ensuring that gas becomes a key driver of Nigeria’s economy by 2030.
“This is in line with the vision of the President of the Federal Republic of Nigeria to improve gas production, distribution, and utilisation. And in line with the Decade of Gas Initiative, we are looking at gas driving the economy of this nation come 2030,” he said.
He also lauded the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its diligence in granting the license and commended UTM leadership for spearheading the bold initiative.
“I salute NMDPRA for due diligence, and I salute my brother, the CEO of UTM, Julius Rone, for the bold step that he has taken with his team to bring to board what we are going to celebrate today,” he added.
Ekpo assured UTM of the Federal Government’s unwavering support to ensure the successful completion of the FLNG facility.
“The Federal Government of Nigeria, under the leadership of President Bola Ahmed Tinubu, will give you all the necessary support, the conducive environment to operate, so that at the end of the day, the dream of the Decade of Gas, of increasing gas, is a project,” he said.
The Minister expressed confidence in UTM’s capacity to deliver the project successfully.
“I have seen the faces of those people that have been mentioned as a team of UTM, and I know there are people that can make things happen. So I celebrate you too,” Ekpo said, underscoring the importance of the project to Nigeria’s leadership in the African energy sector.
Ekpo emphasised Nigeria’s potential to regain its status as the leader of Africa’s gas sector, urging continued collaboration between the government and stakeholders.
In his welcome remarks, Authority Chief Executive (ACE£, Engr Farouk Ahmed said Nigeria’s abundant natural gas resources are expected to provide the country with the catalyst for growth and prosperity.
He disclosed that the facility located offshore Akwa Ibom State (OML 104) will process 324 MMSCFD of natural gas and produce 2.8 million Tonnes Per
Annum (TPA) of LNG.
The Authority chief further revealed that though the NMDPRA had in February 2021 issued UTM Offshore with a ‘License to Establish (LTE)’ 1.2 MTPA facility by processing 176 MMSCFD, the license was renewed in August 2023.
“Due to an increase in LNG demand, the project’s capacity was upgraded from 1.2 MTPA to 2.8 MTPA. This upgrade required an increase in feed gas from 176 MMSCFD to 324 MMSCFD,” he stated.
NMDPRA chief said his team would continue to guide the project throughout its lifespan, to ensure compliance with all regulatory requirements including the assurance of safety, protection of the environment, sustainable.
