The Nigerian National Petroleum Company Limited (NNPCL) and UTM Offshore Limited have entered into a significant Heads of Terms (HoT) agreement to build Nigeria’s first indigenous 1.5 million tonnes per annum Floating Liquefied Natural Gas (FLNG) project. The agreement marks a major milestone in the country’s energy sector.
UTM Offshore, a Nigerian marine and services group, had previously signed a memorandum of understanding with the African Export-Import Bank to secure $2 billion for the development of the FLNG project, showcasing the capability of indigenous companies to collaborate with global energy conglomerates.
The NNPCL’s Group CEO, Mele Kyari, expressed enthusiasm for the project, describing it as a crucial initiative for Nigeria. The oil company is fully committed to securing the necessary gas feedstock for the successful execution of the project.
Julius Rone, Group Managing Director of UTM Offshore, expressed delight in partnering with NNPCL. He emphasized that the FLNG facility would significantly reduce gas flaring, aligning with Nigeria’s commitment to reducing carbon emissions and contributing to economic growth by creating over 7,000 job opportunities.
Opinion: The signing of the HoT agreement for Nigeria’s first indigenous FLNG project is a momentous development for the country’s energy sector. The collaboration between NNPCL and UTM Offshore showcases the potential of local companies to drive growth and innovation in the energy industry. Additionally, the project’s focus on sustainability and job creation reflects a positive step towards achieving economic and environmental goals.