The Federal Government on Friday issued a ‘Licence to Construct’ to UTM Offshore Limited to develop a floating liquefied natural gas plant with an annual production capacity of 2.8 million tonnes.
The historic project is a first for Nigeria and is in line with the government’s ongoing efforts to increase gas production, distribution, and utilization under the “Decade of Gas” initiative.
Speaking at the official event, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, hailed the milestone as an expression of President Bola Tinubu’s vision to transform the country’s gas industry.
“Today is a significant day in the life of the Ministry of Petroleum Resources, Gas,” Ekpo said, highlighting the importance of the FLNG project to the country’s energy future.
Ekpo explained: “I had to cut short my stay in China to come back for this very important event. I’m going to witness the handing over of licenses to UTM Energy to operate. It will take up to 2.8 million tonnes of energy. And from what the Authority Chief Executive has said, this is the first in Nigeria.”
The floating facility, which will be built offshore, is seen as a key part of Nigeria’s ambitious gas expansion plans.
Ekpo reiterated the government’s commitment to making gas the main driver of the Nigerian economy by 2030.
“This is in line with the vision of the President of the Federal Republic of Nigeria to improve gas production, distribution, and utilization. And in line with the Decade of Gas Initiative, we are looking at gas driving the economy of this nation come 2030,” he said.
He also commended the Nigerian Midstream and Downstream Petroleum Regulatory Agency for its diligence in granting the license and commended UTM leadership for its bold initiative.
“I salute NMDPRA for due diligence, and I salute my brother, the CEO of UTM, Julius Rone, for the bold step that he has taken with his team to bring to board what we are going to celebrate today,” he added.
Ekpo assured UTM of the unwavering support of the Federal Government to ensure the successful completion of the FLNG plant.
“The Federal Government of Nigeria, under the leadership of President Bola Ahmed Tinubu, will give you all the necessary support, the conducive environment to operate, so that at the end of the day, the dream of the Decade of Gas, of increasing gas, is a project,” he said.
The Minister expressed confidence in UTM’s ability to successfully implement the project.
“I’ve seen the faces of those people that have been mentioned as a team of UTM, and I know there are people that can make things happen. So I celebrate you too,” Ekpo said, stressing the importance of the project to Nigeria’s leadership in the African energy sector.
Ekpo stressed that Nigeria has the potential to regain its position as a leading country in the gas sector in Africa, urging continued collaboration between the government and stakeholders.
“Other nations are developing their gas sector very well. So Nigeria, with its abundant gas resource, under the leadership of President Bola Tinubu, who has focused on gas, should be committed to the task of working with the President to attain the goal, the vision that he has for our country, Nigeria. And when we do this together, the sky is going to be our limit,” he said.
