PARIS OLYMPIC GAMES
In a bid to further boost Nigeria’s gas resources, President Bola Tinubu has given full presidential support to the implementation of the country’s first Floating Liquefied Natural Gas (FLNG) project being executed as a joint venture with some French and Japanse partners.
With the potential of offering 7,000 jobs, the $5 billion project will start in the fourth quarter of 2026.
According to Tinubu, his administration is fully committed to the successful execution of the project as part of effort to develop Nigeria’s gas resources.
Tinubu spoke on Wednesday while receiving a group of joint venture partners based in France and Japan led by the French Ambassador to Nigeria, Emmanuella Blatmann, and the Deputy Ambassador for Japan to Nigeria, Hiromi Otuski at the Presidential Villa, Abuja.
Others on the delegation are Group the Managing Director of UTM FLNG Ltd, Julius Rone, the Managing Director of JGC, Naoki Noguchi, the Project Advisor, Sadeeq Mai Bornu, the Senior Vice-President (Commercial),
Technip Energies, Christopher Virondaud, Senior Executive Officer, Senior Vice-President, BD and Marketing Division JGC Corporation, Koji Sakurai.
Speaking with State House correspondents after the visit, Rone said the President had directed his Chief of Staff to ensure that no obstacle should threaten the delivery date of the project.
“We are developing the first floating LNG in Nigeria in conjunction with the National Petroleum Corporation Corporation (NNPC). This is the first time an indigenous company from Africa is taking on such projects. We have just got one of the best days in our transaction.
“Mr. President has given us all the assurances and full support for this project. For us, we are excited because Mr. President spoke very highly of the need to develop our gas resources and he believes in the floating LNG technology.
“And he assured us that there will be no stones left to us to deliver this project as planned and scheduled.
“So we are happy that we secured Mr. President’s support for this project. And he assured us that anything that we will require to get this project off the ground, to get it to completion, he will definitely give us 110%.
“Mr. President said there is no obstacle to hinder the delivery of this project and that we will have this project delivered is a must, is not if we want to do it.
“So for us that is an assurance to continue to invest our money and that is quite assuring for the investors that came all the way from Japan and Paris to visit Mr. President because they believe in this project. So by the special grace of God, Nigeria will have our first floating LNG fourth quarter in 2026,’’ he said.
On the capacity of the project, Rone said it will produce 300,000 tonnes per annum of LPG.
“FLNG facility being the very first being developed by an indigenous private African company in Nigeria, will among other things, boost production and crash the cost of gas for domestic, auto and industrial use in the country’’.
He said facility will also leapfrog the national economy by producing an annual 1.5 million tonnes of Liquified Natural Gas (LNG) for export as well as 300,000 LPG metric tonnes for domestic market aimed at lowering and stabilising prices of gas, while creating thousands of jobs and investment opportunities in Nigeria.
“The project will serve as a legacy project under the Tinubu administration in the quest to revitalize the nation’s economy, rejuvenate the productive sector, create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.’’
The FLNG facility, Rone added, will be anchored offshore in Akwa Ibom State in about 60m water depth.
“When completed in Q4 2026, the facility will produce on annual basis, 1.5 million tonnes of LNG for export, 300,000 metric tonnes of LPG for domestic market (DLPG) and some quantities of condensate.
“300,000 metric tonnes of LPG production which will be dedicated to domestic market (DLPG) represents 25 per cent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for auto gas and other industrial purposes among others. Moreover, about 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.
“Also, LPG addresses deforestation, helps reduce mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating flaring of Associated Gas, Nigeria can meet its Climate Change goals and this project is one such enabler,’’ he said.
Rone lauded the administration for what he called its commitment in providing access to clean, accessible, affordable, available and abundant energy for all Nigerians and promised to partner with the government to actualize the agenda.
Afreximbank is facilitating the financing of the project with financial closure envisaged for Q4 2023. UTM FLNG Limited, a subsidiary of UTM Offshore Ltd, is a Special Purpose Vehicle created to actualise the project.
Leave a comment