Tinubu backs $5bn floating LNG project implementation

President Bola Tinubu on Wednesday gave his support to the implementation of a $5 billion floating Liquefied Natural Gas (LNG) project in the country.

He gave the backing when he received a group of joint venture partners made up of UTM FLNG, TECHNIP Energies, and JGC Corporation in his office at the Presidential Villa, Abuja.

Speaking to correspondents after the meeting with the president, leader of the delegation and Group Managing Director (GMD) of UTM FLNG, Julius Rone, revealed that the multi-floating LNGs are being implemented with a $5 billion loan from AFRIEXIM Bank.

He said Tinubu has assured that his administration would provide full support for the project because it fits into his programme to revive the economy and provide more jobs.

Rone revealed that the project has the capacity to produce 300,000 tons of LPG per year and would provide 7,000 direct jobs for Nigerians.

He said it was the first time in Nigeria that an indigenous company would be involved in such a project that would contribute to decarbonization.

According to him, the facility, which is a subsidiary of UTM Offshore Ltd, will also boost the national economy by producing  1.5 million tonnes of Liquified Natural Gas (LNG) annually for export and 300,000 LPG metric tonnes for the domestic market.

He assured that the objective is to lower and stabilize prices of gas while creating thousands of jobs and investment opportunities in Nigeria, adding that the project has the capacity to provide 7,000  jobs for Nigerians.

He said it is the first time in Nigeria that an indigenous company will be involved in such a project, expected to come on stream in the first quarter of 2026 and contribute to decarbonization.

He assured that the project will serve as a legacy project under the Tinubu administration in the quest to revitalize the nation’s economy, rejuvenate the productive sector, and create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.

The investor explained that the FLNG facility will be anchored offshore in Akwa Ibom State at about 60m water depth.

Rone revealed what he told the President in a separate statement, saying: “We believe the project is coming at the right time in line with your Renewed Hope agenda of leapfrogging Nigeria’s socio-economic development by sustainably developing our enormous gas resources.

“When completed in Q4 2026, the facility will produce, on an annual basis, 1.5 million tonnes of LNG for export, 300,000 metric tonnes of LPG for the domestic market (DLPG), and some quantities of condensate.

“300,000 metric tonnes of LPG production, which will be dedicated to the domestic market (DLPG) represents 25 percent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for autogas and other industrial purposes among others.

“Moreover, about 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.

“Also, LPG addresses deforestation and helps reduce the mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating the flaring of Associated Gas, Nigeria can meet its Climate Change goals, and this project is one such enabler.”

He commended the Tinubu administration for its commitment to providing access to clean, accessible, affordable, available, and abundant energy for all Nigerians and reiterated UTM’s commitment to partner with the Federal government to realise this agenda.

With the UTM boss on the visit to the president were France’s Ambassador in Nigeria, Emmanuelle Blatmann; Japan’s Deputy Ambassador in Nigeria, Ms. Hiromi Otsuki and Christopher Virondaud, Koji Sakurai,

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