UTM Offshore says it is on track to take a final investment decision in September on what would become Nigeria’s first floating LNG project, a development the company says could unlock stranded offshore gas, cut flaring and strengthen domestic fuel supply.
“Today is a great day for not just Nigeria, for the world, because in signing this gas agreement underpins that this project can proceed into the next stage,” said UTM Offshore group managing director Julius Rone, adding that financing is now in place and the company expects to sign its gas supply and engineering, procurement and construction contracts before Christmas, with construction to begin in the first quarter of next year.
Rone said more than 300,000 tonnes of liquefied petroleum gas would be channelled back into Nigeria’s domestic market under the project, helping expand access to cleaner cooking fuel, while gas currently being flared would instead be captured and processed into LNG and LPG. NNPC holds a 20 percent stake in the project alongside UTM Offshore and other partners, and the company says it is already eyeing follow-on floating LNG developments modelled on Mozambique’s offshore LNG expansion.
Source: (leadership.ng)