UTM Offshore Targets September for Nigeria's LNG Plant Decision

Julius Rone, the Group Managing Director of UTM Offshore, is targeting September for the Final Investment Decision on Nigeria’s first floating liquefied natural gas (LNG) plant, which is estimated to cost around $3 billion. This facility will be located 60 kilometers off Akwa Ibom State at the Yoho field, processing gas that currently lacks a market.

The floating model allows for the capture, liquefaction, and shipping of offshore gas without the need for extensive onshore infrastructure. A 15-year Wet Gas Sale and Purchase Agreement with NNPC Limited and Seplat Energy secures approximately 200 million standard cubic feet of gas daily, addressing a major hurdle for the project.

The plant is expected to export between 1.5 to 1.8 million tonnes of LNG annually and supply 300,000 to 500,000 tonnes of cooking gas locally, meeting about a quarter of Nigeria’s domestic LPG demand. Financing includes a $350 million commitment from Afreximbank, with NNPC Limited holding a 20% equity stake and the Delta State Government holding 8%.

JGC Corporation and Technip Energies are responsible for the technical build, with the project’s headquarters located in Warri, Delta State.