Nigeria’s pioneering FLNG project advances to construction phase
Africa’s energy landscape takes a significant step forward as Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) facility enters the construction stage, a landmark achievement for the nation’s gas monetisation and energy security ambitions.
Dr. Julius Rone, CEO of UTM Offshore, announced the milestone during a recent awards ceremony in Lagos, where he was honoured as Investor of the Year by Sun Publishing Limited. Describing the moment as transformative for Nigeria’s energy sector, Rone credited the progress to an enhanced investment climate under President Bola Tinubu’s administration and the Renewed Hope Agenda, which has spurred private-sector participation in gas development.
“This year, we are moving into construction,” Rone stated, highlighting that the project has advanced through extensive planning, financing, and regulatory processes to reach execution readiness.
Located at the Yoho Field in Oil Mining Lease (OML) 104, approximately 60 kilometres offshore in the Niger Delta, the FLNG facility is designed to produce 1.5 million tonnes per annum of LNG for export markets and 300,000 tonnes per annum of Liquefied Petroleum Gas (LPG) dedicated to domestic supply. Drawing from 2.2 trillion cubic feet of gas reserves, operations are projected to continue for at least 20 years.
A key priority remains bolstering local energy access: the project will supply substantial LPG volumes domestically, potentially eliminating up to one-quarter of Nigeria’s current cooking gas imports and advancing self-sufficiency in this critical area.
Beyond supply benefits, the initiative promises substantial economic impacts, including job creation, increased government revenue, and broader economic growth.
The project has secured robust financial backing, with Afreximbank leading mobilisation efforts for $2 billion in Phase 1 and an additional $3 billion for Phase 2, totalling $5 billion. Ownership structure includes UTM FLNG (72% equity), Nigerian National Petroleum Company Limited (NNPCL) (20%), and Delta State (8%).
Technical partnerships feature globally renowned firms such as JGC Holdings, Technip Energies, and KBR, while environmental and social impact assessments have been successfully completed.
Project Advisor and UTM FLNG board member Sadeeq Mai-Bornu commended the recognition, noting that successful delivery of this pioneering indigenous FLNG venture will pave the way for additional projects across Nigeria and the region.
As Nigeria harnesses its vast gas resources through innovative floating technologies, this development underscores growing confidence in African-led energy initiatives and positions the country as an emerging player in the global LNG market.
