NMDPRA Licenses Nigeria’s First Floating LNG Facility
By Kelvin Alohan
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a ‘Licence to Construct’ to UTM Offshore Limited for the development of a 2.8 million tonnes per annum Floating Liquefied Natural Gas (FLNG) facility.
Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, who witnessed the epoch event, said it aligns with the government’s ongoing efforts to boost gas production, distribution and utilisation under the Decade of Gas Initiative.
The minister who brought greetings from the President, said, “Today is a significant day in the life of the Ministry of Petroleum Resources, Gas. I had to cut short my stay in China to come back for this very important event. I am 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.”
While emphasising that the floating facility to be constructed offshore is a critical component of Nigeria’s ambitious gas expansion plans, Ekpo reiterated the administration’s commitment to ensuring that gas becomes a key driver of Nigeria’s economy by 2030.
“This is in line with the President’s vision 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.
The minister who lauded the NMDPRA for its diligence in granting the license, and commended UTM leadership for spearheading the bold initiative, assured UTM of the Federal Government’s unwavering support to ensure the successful completion of the FLNG facility.
“The Federal Government of Nigeria, under the leadership of President Bola 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 is realised,” he said.
Ekpo who emphasised Nigeria’s potential to regain its status as the leader of Africa’s gas sector, further urged continued collaboration between the government and stakeholders.
In his remarks, Authority Chief Executive, Engr. Farouk Ahmed, said Nigeria’s abundant natural gas resources are expected to provide the country with the catalyst for growth and prosperity, disclosing that the facility located offshore Akwa Ibom State (OML 104) will process 324 MMSCFD of natural gas and produce 2.8 million tonnes per annum of LNG.
Engr. Farouk further revealed that though the NMDPRA had in February 2021 issued UTM Offshore with a ‘License to Establish (LTE)’ 1.2 MTPA facility by processing 176 MMSCFD, the license was renewed in August 2023. “Due to an increase in LNG demand, the project’s capacity was upgraded from 1.2 MTPA to 2.8 MTPA, this upgrade required an increase in feed gas from 176 MMSCFD to 324 MMSCFD,” he explained.
The Authority chief further added that his team would continue to guide the project throughout its lifespan, to ensure compliance with all regulatory requirements including the assurance of safety, protection of the environment and sustainability.
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