UTM FLNG Limited, the developer of Nigeria’s first floating liquified natural gas facility, has targeted the fourth quarter of 2024 to achieve a Final Investment Decision on its floating liquefied natural gas project.
The Board of Directors of the company, in its maiden meeting on Tuesday, July 23, 2024, in Abuja, evaluated and approved the progress of the company, particularly the Engineering, Procurement, Construction, Installation, and Commissioning phase of the project.
In addition, the board of directors directed the company to expedite action on the management and organisational structure to ensure a smooth takeoff of the project’s construction phase.
Speaking at the end of the meeting, Julius Rone, the managing director and chief executive officer of UTM FLNG, assured that the company had laid all processes to ensure a smooth takeoff and targeted production capacity of 2.8 million metric tonnes per annum by the fourth quarter of 2028.
He added that the company is concluding all the necessary approvals from appropriate agencies and regulators.
He said: “The Board met today and evaluated all the processes and progress the company has made in the effort to develop the first indigenous floating LNG in Nigeria and in fact in Africa.
“The board was delighted by the progress made so far, particularly on the EPCIC phase. It directed that the management should ensure the FID is taken by the fourth quarter of the year.
“So, our Company is set for FID before the end of this year and on completion in Q4 2028 it will have a production capacity of 2.8 million metric tonnes of natural gas, 450 metric tonnes of LPG, and other liquids per annum for export and domestic consumption.”
Rone said that this development is a huge step that will leapfrog the economy by ensuring the availability of gas at a lower cost for household, automobile, and industrial uses. “It will also generate massive employment and multi-million Naira business opportunities for Nigerians.”
Rone said that gas resource is a key driver of economic growth and development for Nigeria with nearly 209 trillion cubic feet of natural gas reserve which ranks as the ninth highest in the world.
The UTM boss also commended President Bola Ahmed Tinubu for encouraging private investments and creating the enabling environment for companies like UTM FLNG to thrive in the overall interest of the country.
Members of the Board at the meeting include the representatives of the NNPC Ltd led by Olalekan Ogunleye, NNPC Executive Vice President, Gas, Power and New Energy; Salihu Jamari, Managing Director NNPC Gas and Power Investment; while the Delta State Government was represented by Gibson Pinnick, the Permanent Secretary Ministry of Finance.
Other Board members representing UTM Offshore Ltd include MD/CEO of UTM Limited, Julius Rone, Akin Ricketts, Doyin Adelabu, and Sadeeq Mai-Bornu who acted as Protem Chairman of the meeting. (July 25, 2024)
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