Nigeria’s President, Bola Tinubu has pledged support for the implementation of a $5 billion floating Liquefied Natural Gas (LNG) project in the country.
The President gave the backing when he received a group of joint venture partners made up of UTM FLNG, TECHNIP Energies, and JGC Corporation in his office at the Presidential Villa, Abuja on Wednesday
He commended UTM FLNG Limited as well as its technical partners, Technip Energies of France, and its Japanese counterpart, JGC, for the initiative and partnership.
“Yes, we have abundance of gas on the ground. However, the extractive industry needs the injection of your kind of partnership to be able to promote growth.
“It is a must for any government to support. Let me know if there are any bottlenecks, we will break them,” he said.
The President applauded the conglomerate for the massive investment which, he said, would promote growth and protection of the environment.
Briefing Journalists after the meeting with the president, leader of the delegation and Group Managing Director (GMD) of UTM FLNG, Julius Rone, revealed that the multi-floating LNGs are being implemented with a $5 billion loan from AFRIEXIM Bank.
He said Tinubu has assured that his administration would provide full support for the project because it fits into his programme to revive the economy and provide more jobs.
Rone revealed that the project has the capacity to produce 300,000 tons of LPG per year and would provide 7,000 direct jobs for Nigerians.
He said it was the first time in Nigeria that an indigenous company would be involved in such a project that would contribute to decarbonization.
According to him, the facility, which is a subsidiary of UTM Offshore Ltd, will also boost the national economy by producing 1.5 million tonnes of Liquified Natural Gas (LNG) annually for export and 300,000 LPG metric tonnes for the domestic market.
He assured that the objective is to lower and stabilize prices of gas while creating thousands of jobs and investment opportunities in Nigeria, adding that the project has the capacity to provide 7,000 jobs for Nigerians.
He said it is the first time in Nigeria that an indigenous company will be involved in such a project, expected to come on stream in the first quarter of 2026 and contribute to decarbonization.
He assured that 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, and create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.
The investor explained that the FLNG facility will be anchored offshore in Akwa Ibom State at about 60m water depth.
He said when the facility gets upstream by the Fourth Quarter of 2026, it would process 1.5 million metric tonnes of Liquefied Natural Gas for foreign market, and produce 300,000 metric tonnes of Liquefied Petroleum Gas (LPG) for domestic use.
Mr. Rone said the company would cater for 25 percent of domestic demand for LPG.
He therefore solicited for President Tinubu’s support to eliminate any encumbrances that may endanger the delivery of the project by the targeted date.
In her remarks, the French Ambassador to Nigeria, Emmanuelle Blatmann, described the project as a milestone, cementing the French presence in Nigeria’s economic space.
The facility, she said, would advance the economic diversification agenda of the Federal Government by tapping into the country’s abundant gas deposit.
When delivered, she said, the gas from Nigeria would be viable as an alternative source of gas for Europe.
Also in the delegation were the Japanese Deputy Ambassador to Nigeria, Ms Hiromi Otuski, Managing Director of JGC, Mr. Naoki Noguchi, and Project Advisor, Mr. Sadeeq Mai Bornu.