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UTM Offshore making strides towards Nigeria’s first indigenous floating LNG project

December 26, 2023
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UTM Offshore making strides towards Nigeria’s first indigenous floating LNG project
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Home Liquefied Natural Gas UTM Offshore making strides towards Nigeria’s first indigenous floating LNG project

December 26, 2023,
by

Ajsa Habibic

UTM Offshore and Nigerian National Petroleum Corporation (NNPC) have signed a shareholders agreement with Delta State Government for the development of the nation’s first indigenous floating LNG project.

Courtesy of UTM Offshore

Under the agreement, which was hailed as a significant milestone in the development of the project, Delta State Government will own an 8% share of the project. NNPC will own 20% and the remaining 72% share is reserved for UTM Offshore.

Speaking at the signing ceremony, Governor Sheriff Oborevwori of Delta State explained that the state government took 8% equity in the floating LNG project because of its conviction of the strategic importance of the project to the national economy, adding that with 40% of Nigeria’s proven gas reserves in Delta State, it was a worthy investment.

He also expressed hope that construction of the project will begin next year.

Group Managing Director of UTM, Julius Rone, said the signing ceremony marks another significant milestone in actualizing Nigeria’s first indigenous FLNG.

According to Rone, the final investment decision (FID) on the project is expected to be taken before the end of the first quarter of 2024.

The agreement with Delta State follows the deal signed by NNPC and UTM Offshore earlier this year for the construction of Nigeria’s first indigenous floating LNG project.

Supported by $5 billion from the African Export-Import Bank (Afreximbank), the 1.5 million tonnes per annum (mtpa) project is seen as a “must-do” initiative for Nigeria.

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>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : OffshoreEnergy – https://www.offshore-energy.biz/utm-offshore-making-strides-towards-nigerias-first-indigenous-floating-lng-project/

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