Privately held Nigerian company, UTM Offshore; global energy company, the Nigerian National Petroleum Corporation (NNPC) Ltd.; and the Delta State Government have signed a shareholders agreement for the development of the first Floating Liquefied Natural Gas (FLNG) project in Nigeria.
Boasting the capacity to produce 1.8 billion tons of LNG per year for both the domestic market and export to international markets, the Final Investment Decision for the project is expected before the end of the second quarter of 2024.
“Of particular interest to the Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socioeconomic development of our great state,” stated Sheriff Oborevwori, Governor of Delta State, adding, “It is expected that over 300,000 tons of Liquefied Petroleum Gas will be produced and dedicated to the domestic market.”
Supported by a $5 billion investment from the African Export-Import Bank, the FLNG project is the first of its kind in Nigeria and the first to be developed by a privately held Nigerian company.
Under the agreement, UTM Offshore will take a 72% equity share in the project, NNPCL will take a 20% share, while the Delta State Government will acquire an 8% equity in the FLNG project.
