Delta State’s acquisition of an 8% stake in the UTM Floating Liquefied Natural Gas (FLNG) plant is being hailed as a visionary decision with significant financial and developmental benefits. With federal allocations and internally generated revenue proving insufficient, this investment promises to bolster the state’s finances, enabling more rapid infrastructure development and economic growth. Unlike missed opportunities, such as the failure to invest in Shell Petroleum’s divested assets in 2012, this timely move secures long-term revenue streams for the state.
The UTM FLNG project, headquartered in Warri, Delta State, despite being operationally based in Akwa Ibom’s OML104, boasts proven reserves of 2.2 trillion cubic feet of gas. Expected to produce 2.8 million tonnes of liquefied natural gas annually by 2029, it will create jobs for Delta’s youth and women while generating significant export revenue. The investment, valued at over ₦200 billion, is seen as a step toward economic diversification and empowerment, with stakeholders like former Governor Ifeanyi Okowa and incumbent Governor Sheriff Oborevwori earning praise for their foresight.
Backed by strong federal support, including a 20% stake by the Nigerian National Petroleum Company Limited (NNPCL), and led by Delta-born Julius Rone, the project is attracting confidence from investors. As Nigeria’s first indigenous FLNG plant, it symbolizes a breakthrough in local industrial innovation. This move sets a precedent for Delta State to seek similar transformative opportunities, ensuring sustained growth and prosperity for its citizens.
