How NCDMB plans to help build Nigeria’s first floating LNG vessel by 2028
By 2028 when the floating vessel would have been built, it would contribute about 450,000 tonnes of liquified petroleum gas to households.
When the project reaches the 2028 deadline that has been set for its completion, a floating liquefied gas vessel, which is going to be Nigeria’s first, will serve tonnes of gas that households and vehicles can run on. This is why an invitation has gone in the direction of the Nigerian Content Development and Monitoring Board (NCDMB) to join their stake with the optimistic handlers.
UTM Offshore Limited, the promoters of the gas production facility while meeting the Board’s Executive Secretary, Engr. Felix Omatsola Ogbe on Wednesday, 13 March offered the invite, requesting the NCDMB to seek shares in the project and also hasten the approvals that will lead to its success.
Group Managing Director, Mr. Julius Rone represented UTM Offshore Limited at the Nigerian Content Tower in Yenagoa, Bayelsa State where the pair held their conversation.
By 2028 when the floating vessel would have been built, it would contribute about 450,000tonnes 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 dependence on imported LPG.
Giving a brief on the company, the 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.
The Nigerian National Petroleum Company Limited (NNPCL) has acquired 20 percent of the venture and also the Delta State Government holds eight percent. There is still room to own a share out of the 72 percent retained by UTM Offshore. Mr Rone 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.
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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 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.
In his response, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe having confirmed that there would be speedy approvals of requests urged the company to be proactive and to let us know whatever challenge or obstacles that you encounter.
Before the Board can consider having a stake in the floating vessel being built, there must be confirmation from other stakeholders including the Governing Council and that will be set in motion. For the moment, the Executive Secretary is looking forward to the Nigerian Content roadshow happening in April to explore opportunities for other Nigerian firms on the FLNG project.
