The floating plant is set to produce condensate alongside LNG and petroleum gas. Credit: Kate Scott/Shutterstock.

Nigerian company UTM Offshore has received a licence to construct what it asserts will be the country’s first floating LNG plant.

The project aims to utilise Nigeria’s vast gas reserves, estimated at more than 209 trillion cubic feet, reported Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The floating LNG facility, with an increased capacity of 2.8 million tonnes per annum (mtpa), will capture flared gas from ExxonMobil’s Oil Mining Lease 104 (Yoho field) located offshore in Akwa Ibom, southern Nigeria.

Bloomberg News quoted Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) head Farouk Ahmed as saying that the project secured a licence to build a 1.2mtpa in 2019.

However, the project’s capacity was upgraded to 2.8mtpa “because of increased LNG demand in the market”.

See Also:

UTM Offshore CEO Julius Rone announced that the engineering work for the plant is scheduled for completion in 2028, with production commencing in the first quarter of 2029.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Rone further detailed that the facility would supply 500,000 tonnes of liquefied petroleum gas to the domestic market, while the LNG produced would be earmarked for export.

Additionally, the plant is set to produce condensate alongside LNG and petroleum gas.

Financing for the project’s first phase, amounting to $2.1bn, has been secured through Afreximbank, which has also pledged $3bn for the second phase.

UTM Offshore has finalised contracts with Japan’s JGC and KBR for the design of the project.

Moreover, an off-take agreement for the LNG produced at the facility has been established with Vitol Group.

In a strategic move last year, state-owned Nigerian National Petroleum acquired a 20% stake in the project.