Nigeria’s oil regulator has granted UTM Offshore Limited the country’s first license to operate a floating liquefied natural gas plant, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported late Friday.
The project aims to tap flared gas from ExxonMobil’s Oil Mining Lease 104 (Yoho field) in the Niger Delta, marking a significant milestone in the nation's efforts to harness its gas resources and reduce emissions.
The 2.8 million tons per annum (MTPA) floating facility will be stationed off the coast of Akwa Ibom in southern Nigeria. UTM Offshore CEO Julius Rone reportedly said the project will provide 500,000 tonnes of liquefied petroleum gas for Nigeria's domestic market, while the liquefied natural gas (LNG) will be exported, helping to meet rising global demand.
He also noted that engineering work is expected to be completed by 2028, with production set to begin in the first quarter of 2029.
Farouk Ahmed, head of the NMDPRA, announced that the plant’s capacity had been upgraded from an initial 1.2 MTPA to 2.8 MTPA, driven by the increasing demand for LNG, according to reports.
Financing for the project is being provided by the African Export-Import Bank, which has committed $2.1 billion for the first phase of construction and an additional $3 billion for the second phase.