Nigeria’s UTM Offshore Targets September for Floating LNG Milestone
Nigerian energy company UTM Offshore is targeting September to reach a final investment decision on what would be Nigeria’s first floating liquefied natural gas (FLNG) facility, according to AllAfrica reporting. The company’s Group Managing Director, Julius Rone, widely known in the industry as the “King of Gas,” has set the timeline as he seeks to advance a project aimed at tapping stranded gas reserves in the Niger Delta.
For decades, gas flares have lit the night sky over the Niger Delta, with associated gas produced alongside oil routinely burned off rather than captured. Despite holding some of Africa’s largest proven natural gas reserves, Nigeria has historically struggled to fully monetise the resource. The country has relied primarily on its onshore Nigeria LNG (NLNG) plant at Bonny Island, which began exports in 1999 and has long positioned Nigeria among the world’s leading LNG exporters.
FLNG technology allows natural gas to be liquefied at sea, bypassing the need for costly onshore pipelines and processing infrastructure. UTM Offshore has been developing plans for a floating facility that would process gas offshore, an approach that has gained traction globally as a way to unlock reserves that are otherwise uneconomic to develop. As AllAfrica reported, Rone’s September target is for a decision that could change how Nigeria monetises its stranded gas.
A successful final investment decision would mark a step in long-running efforts to reduce gas flaring, expand Nigeria’s LNG export capacity beyond Bonny Island, and convert wasted resources into revenue. If executed, the project would represent the country’s first floating LNG plant, signalling a new chapter in the underutilisation of one of Africa’s largest gas reserves.
Sources
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