FG grants UTM FLNG licence to construct floating LNG plant

The Federal Government has officially granted UTM FLNG Limited a licence to construct (LTC) Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility, opening a new economic gateway for the country, Africa’s largest crude oil producer, in the global gas market.

The issuance of the LTC to UTM FLNG by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), last Friday, came as a fulfillment of the assurance by the President Bola Tinubu-led administration in July 2023 to give all necessary support to the Nigerian firm to ensure the actualisation of the landmark gas project.

Recall that during an audience with the management of the company and its foreign partners at the state House, Abuja, Tinubu promised to remove all impediments to the timely completion of the facility.

The UTM FLNG plant, with a capacity of 2.8 million tons per annum (MTPA), will produce Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and condensate from re-injected gas at the OML 104 Yoho Field.

The project represents a giant leap forward in Nigeria’s energy sector, enhancing the country’s ability to harness its untapped 209 trillion cubic feet of natural gas for both export and domestic consumption.

This is expected to leapfrog the national economy by ensuring the availability of gas at lower cost and generate massive employment and multi-million naira business opportunities for Nigerians and other nationals.

Speaking during the event at the NMDPRA headquarters in Abuja, which was attended by key industry players, including the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the Chief Executive Officer of NMDPRA, Farouk Ahmed, said that the LTC signing ceremony “marks a significant milestone and aligns with the gas expansion ambitions of the government” as contained in the Petroleum Industry Act (PIA) 2021.

Ahmed noted that the FLNG is a yield of the President’s effort to expand the midstream gas sector, adding that the Federal Government will continue to give all necessary support and a conducive environment for the firm to operate.