In a significant move towards strengthening its energy sector and reducing carbon emissions, the Nigerian National Petroleum Company Limited (NNPCL) and UTM Offshore Limited have signed a Heads of Terms (HoT) agreement for the construction of Nigeria’s first indigenous 1.5 million tonnes per annum Floating Liquefied Natural Gas (FLNG) project. UTM Offshore, a Nigerian marine and services group, will be raising $2 billion for the development of this groundbreaking project, aiming to cut down on gas flaring and create over 7,000 job opportunities, contributing to the country’s economic growth.
The agreement marks a milestone achievement for indigenous companies in Nigeria, showcasing their ability to collaborate with world-class energy conglomerates for the nation’s benefit. NNPCL’s Group CEO, Mele Kyari, described the FLNG project as a ‘must-do’ initiative, expressing the company’s readiness to secure gas feedstock for the project. The facility aligns with NNPCL’s goals of ensuring energy availability, affordability, sustainability, and generating revenue through exports.
UTM Offshore’s Group Managing Director, Julius Rone, expressed delight with the partnership, emphasizing the project’s potential to support Nigeria’s commitment to reducing carbon emissions and promoting cleaner energy solutions. By harnessing floating LNG technology, the project will enhance Nigeria’s gas utilization and monetization efforts, making a positive impact on the environment and the economy.
Opinion: The signing of the Heads of Terms agreement for Nigeria’s first indigenous Floating LNG project is a promising development for the country’s energy sector and economic growth. By leveraging its abundant natural gas resources through FLNG technology, Nigeria can not only reduce gas flaring and carbon emissions but also create significant job opportunities and strengthen its position as a major player in the global energy market. This collaboration between NNPCL and UTM Offshore exemplifies the potential of local companies to drive sustainable growth and innovation in the energy sector, marking a crucial step towards achieving energy security and environmental responsibility in Nigeria.