For years, gas flares have lit the night sky over the Niger Delta, burning off a resource Nigeria has struggled to monetise. Julius Rone, Group Managing Director of UTM Offshore and known in the industry as the King of Gas, is targeting September for a decision that could change that.
That decision is the Final Investment Decision on what would become Nigeria’s first floating liquefied natural gas plant, a facility estimated at roughly $3 billion. It would sit 60 kilometres off Akwa Ibom State, at the Yoho field, processing gas that currently has nowhere to go.
The floating model matters mainly for what it avoids. Rather than waiting years for an extensive onshore processing network, UTM’s design allows offshore gas to be captured, liquefied, and shipped without that infrastructure ever being built on land.
Feed gas is already secured. A 15-year Wet Gas Sale and Purchase Agreement with NNPC Limited and Seplat Energy guarantees roughly 200 million standard cubic feet of gas daily, removing one of the biggest obstacles between the project and its investment decision.
The plant carries both export and domestic ambitions. Once running, it is expected to export around 1.5 to 1.8 million tonnes of LNG annually while supplying 300,000 to 500,000 tonnes of cooking gas locally, meeting roughly a quarter of Nigeria’s domestic LPG demand.
Financing has moved alongside engineering. Afreximbank has committed $350 million to the project, while NNPC Limited holds a 20 per cent equity stake and the Delta State Government holds eight per cent. JGC Corporation of Japan and Technip Energies of France are handling the technical build.
Warri, in Delta State, will host the project’s headquarters, tying the venture to the Niger Delta communities its gas is drawn from.
Nigeria has produced ambitious energy announcements before without seeing them through to steel and production. UTM’s gas supply agreement, financing, and engineering partners are already in place. September will show whether the final piece follows.