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UTM Solicits NCDMB’s Equity Investment, Approvals For Floating LNG Project

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UTM Offshore Limited, promoters of Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility has requested the Nigerian Content Development and Monitoring Board (NCDMB) to invest equity in the project and to accelerate key approvals that would fast-track the project’s development.

 

 

The request was made on Wednesday at the Nigerian Content Tower in Yenagoa, Bayelsa State when the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe hosted the management of UTM Offshore Limited led by the Group Managing Director, Mr. Julius Rone.

The target completion date of the FLNG project is 2028 and it hopes to contribute about 450,000 tonnes of liquified petroleum gas (LPG), otherwise known as cooking gas per annum to the domestic market. This will assuage Nigeria’s average demand of about 1.5 million tonnes of LPG per annum and reduce the dependence on the importation of LPG.

 

Giving a brief on the company, the Group Managing Director stated that UTM is a 100 percent indigenous company, and the floating LNG project will optimise Nigeria’s stranded gas offshore, enhance energy transition, promote domestic consumption of cooking gas, and aid technology transfer, among other benefits.

 

He invited the NCDMB to take equity in the project, hinting that the Nigerian National Petroleum Company Limited (NNPCL) and the Delta State Government were already partners on the project given its importance to Nigeria’s energy security. He described the FLNG as another confirmation of the capability of Nigerians to develop projects of world-class standards.

 

He announced that roadshows were being planned for Uyo and Abuja in April 2024, to showcase the Nigerian Content opportunities in the project and to engender increased participation of Nigerian oil and gas services companies.

 

The UTM Offshore boss thanked the Board’s Management for facilitating the project’s progress, just as he solicited greater synergy with his company on all aspects of Nigerian Content implementation and overall development of the project.

 

Providing further details, the Technical Manager of the FLNG, Engr. George Amara stated that the project’s target total production is 2.72 million tonnes per annum (MTPA), with LNG accounting for 1.81 MTPA, LPG taking up 0.45 MTPA, and condensate making up 0.25 MTPA.

 

He commended NCDMB for approving key stages of the development, including Pre-Front-End Engineering Design (Pre-FEED), the Pre-FEED Nigerian Content Development (NCD) Plan, and the Front-End-Engineering Design (FEED) NCD Plan. Other accomplishments include the Engineering Procurement Construction NCD Plan, the training of three indigenous engineers for Pre-FEED Nigerian Content Development, and the engagement of 13 Nigerian engineers for the FEED NCD scope as well the engagement of Nigerian engineering firms for different aspects of the project.

 

He affirmed that UTM FLNG would utilise Nigerian fabrication yards for in-country activities, adding that an inspection of prospective yards in Lagos and Calabar had been completed.

 

He hinted that the project was going into the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) stage, which is very critical, hence the need to update the NCDMB and request speedy approval for the EPC NCD Plan.

 

In his response, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, expressed delight with the progress recorded on the UTM FLNG and assured that the Board will provide all the required approvals. He urged the company’s Management to “be proactive. Let us know whatever challenge or obstacles that you encounter” assuring that the Board would do all that is within its powers to assist the company and others showing resourcefulness.

On the request for equity investment, the Executive Secretary promised to consider the application with the Board’s management and to escalate the proposal to the Board’s Governing Council for further consideration.

He also promised that the Board would participate in the Nigerian Content roadshow, to explore opportunities for other Nigerian firms on the FLNG project.

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