In what shaping up to be a game-changer for Nigeria energy landscape, the country just Problem its extremely first licence for a floating liquefied natural gas (LNG) plant. It a bold move that taps into the billions of dollars Nigeria has been losing due to gas flaring.
UTM Offshore Limited is leading the charge, securing this licence to put a floating LNG facility on ExxonMobil oil field in the Niger Delta. The field, located off the coast of Akwa Ibom, is set to turn wasted gas into a resource that benefits both the local and global markets.
This is not just a matter of keeping Nigeria ‘lights on’ as important as that may be, it is also about now ensuring that Nigeria gets its equitable share of such a huge natural gas market which up until now was been lost to the country. That is right, dynamic and there is lot in it where more than 209 trillion cubic feet of gas reserves exist. But up until now, a lot of that gas has been flared, or wasted, resulting in over $1 billion in annual losses. That where UTM comes in with their floating LNG Answer, which will scoop up flared gas from ExxonMobil Yoho oil field and put it to good use.
And if you think this is a small operation; then you are dead wrong. The idea which was formulated in this framework was to organize a strategy to address 1. Initial volumes of LNG import that was initially set at 2 million tons per year has now doubled to 2 million tons per year. 8 million tons.
This is not just a matter of keeping Nigeria ‘lights on’ as important as that may be, it is also about now ensuring that Nigeria gets its equitable share of such a huge natural gas market which up until now was been lost to the country. That is right, dynamic and there is lot in it where more than 209 trillion cubic feet of gas reserves exist. But up until now, a lot of that gas has been flared, or wasted, resulting in over $1 billion in annual losses. That where UTM comes in with their floating LNG Answer, which will scoop up flared gas from ExxonMobil Yoho oil field and put it to good use.
And if you think this is a small operation; then you are dead wrong. The idea which was formulated in this framework was to organize a strategy to address 1. Initial volumes of LNG import that was initially set at 2 million tons per year has now doubled to 2 million tons per year. 8 million tons.
That is more than double the initial estimations of the cost of the construction project. Speaking to UTM Offshore’s CEO, Julius Rone, most of the engineering is already progressed, and everything should be fully operational by February, 2029. Hence, it is, by far, more a long-term project because the idea itself is quite far from being implemented in any given organization.
The floating LNG plant won’t just be about exports either. UTM is ensuring that 500,000 metric a considerable amount of liquefied petroleum gas (LPG) will be available for domestic use. That good news for Nigeria energy market, which has been starved for more local supply. Meanwhile, the rest of the LNG will be shipped abroad, tapping into the growing global demand for cleaner energy sources.
Financing this major operation is no small feat either. Afreximbank has stepped up, putting down $2.1 billion for the first phase and promising an additional $3 billion for the next. This level of investment underscores how big this project is not just for Nigeria, but for Africa as a whole.
This new LNG plant will be pivotal in turning what was once considered a wasted resource into an energy powerhouse. But it also raises questions: Will this move significantly reduce Nigeria’s gas flaring problem? And can the nation maximize the benefits of its vast natural gas reserves without overlooking environmental concerns?
As always, there’s more to come. This floating LNG plant marks the start of what could be a major shift in Nigeria’s energy future hopefully, one that pays off for both the environment and the economy.
The floating LNG plant won’t just be about exports either. UTM is ensuring that 500,000 metric a considerable amount of liquefied petroleum gas (LPG) will be available for domestic use. That good news for Nigeria energy market, which has been starved for more local supply. Meanwhile, the rest of the LNG will be shipped abroad, tapping into the growing global demand for cleaner energy sources.
Financing this major operation is no small feat either. Afreximbank has stepped up, putting down $2.1 billion for the first phase and promising an additional $3 billion for the next. This level of investment underscores how big this project is not just for Nigeria, but for Africa as a whole.
This new LNG plant will be pivotal in turning what was once considered a wasted resource into an energy powerhouse. But it also raises questions: Will this move significantly reduce Nigeria’s gas flaring problem? And can the nation maximize the benefits of its vast natural gas reserves without overlooking environmental concerns?
As always, there’s more to come. This floating LNG plant marks the start of what could be a major shift in Nigeria’s energy future hopefully, one that pays off for both the environment and the economy.