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 Secretaryof 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 Directorstated that UTM
is a 100 percent indigenous company, and the floating
LNG project will optimise Nigeria’s stranded
gasoffshore, 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 thedevelopment,
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.