Nigeria has taken a significant step in expanding its gas infrastructure as construction has commenced on the country’s first Floating Liquefied Natural Gas (FLNG) project.
The development was announced by the Chief Executive Officer of UTM Offshore, Dr. Julius Rone, at an awards ceremony in Lagos where he was honoured as Investor of the Year.
He described the project as a major milestone that signals growing confidence in Nigeria’s energy sector after years of planning, financing and regulatory processes.
Rone said the FLNG facility is entering the execution phase following the creation of a more favourable investment climate, particularly for gas development. He attributed the progress to recent policy reforms that have encouraged private sector participation and unlocked fresh investments.
The offshore facility will be located at the Yoho Field in Oil Mining Lease 104, approximately 60 kilometres from the Niger Delta coastline. When completed, it is expected to produce about 1.5 million tonnes of liquefied natural gas annually for export, while supplying roughly 300,000 tonnes of liquefied petroleum gas to the domestic market.
With gas reserves estimated at 2.2 trillion cubic feet, the project is designed to operate for at least 20 years. A key focus of the development is to reduce Nigeria’s dependence on imported cooking gas by boosting local LPG availability.
According to Rone, the domestic supply from the project could replace a sizeable portion of LPG imports, easing pressure on foreign exchange and strengthening energy security. He added that the initiative would also create jobs, increase government revenue and support economic growth.
The project has attracted strong international financial backing, with Afreximbank leading a $2 billion financing package for the first phase and an additional $3 billion secured for the second phase, bringing total investment to $5 billion.
Ownership of the FLNG project is led by UTM FLNG with a 72 per cent stake, followed by the Nigerian National Petroleum Company Limited with 20 per cent, while Delta State holds the remaining eight per cent.
UTM Offshore has partnered with international engineering firms, including JGC Holdings, Technip Energies and KBR. Environmental and social impact assessments have also been completed.
Project Adviser and board member of UTM FLNG, Sadeeq Mai-Bornu, said the successful take-off of the project could open the door for more FLNG developments in Nigeria, describing it as a foundation for future offshore gas investments.
Also speaking, the Managing Director and Editor-in-Chief of Sun Publishing Limited, Onuoha Ukeh, described Rone and other award recipients as exceptional achievers whose investments continue to drive national development beyond government-led initiatives.
