Nigeria-based UTM Offshore Limited, which is planning to construct the country’s first Floating Liquified Natural Gas Facility, says it will make the Final Investment Decision (FID) for the $5 billion project before the end of 2024.
According to the firm, engineering studies have been completed while the Nigerian Downstream and Midstream Petroleum Regulatory Authority (NMDPRA) has also approved the construction.
The Managing Director and Group CEO of UTM Offshore Limited, Julius Rone, disclosed this during a webinar hosted by The Gambia-based African Association of Energy Journalists and Publishers.
“We are now working toward taking the Final Investment Decision, FID, in the fourth quarter of 2024. I just came this morning from my trip around the world where we had a couple of meetings, including the United Nations and the African Export-Import Bank, taking the lead in arranging the debt and equity of the project.
“We had a meeting with them in New York. We look forward to announcing the FID soon. We are very pleased with the level of aggregation of the debt and equity being arranged by the bank.
“The project would impact many stakeholders. Everyone—the community, the region, Nigeria, West Africa and the entire continent—would be positively impacted on completion of the project. It would culminate in reducing gas flaring. Nigeria has signed into the United Nations Global Reduction of Emissions.
“The project would create 7,000 direct and indirect jobs across the value chain, which means a lot of people not only Nigerians but all over the world, would participate in this project.
“It should be noted that during the construction phase alone, over 25,000 jobs would be created. We would also take several Nigerian youths to different parts of the world where the construction and integration would take place for training.
“They would understudy the process so that on completion, they would sail back with the floating LNG, and have the hands-on experience to manage and upgrade the plant of such nature offshore.
“Also, the project would support the demand for energy in Nigeria, which requires over two million tonnes of the Liquefied Petroleum Gas, LPG for domestic consumption.
“Currently, over 1.5 million tonnes are imported from the global market. The supply of our LPG in Naira would enhance the value of the local currency.
“The impact would go beyond Nigeria as one off-taker is currently discussing the possibility of taking the LNG to South Africa with us. It would benefit the entire continent.
“By the special grace of God, this would be the flagship project to open up that space for stranded gas offshore to be monetized through a technology that has been broken.”
He said the FLNG plant would go a long way towards enabling the nation to end its energy poverty, adding, “Once it starts from Nigeria, it moves back to other African countries. Today, Africa is in a complete deficit.
“The governments in African countries must play their parts for investors to come in because governments alone cannot take the continent out of energy poverty.”
Source: https://energynewsafrica.com