Nigeria's UTM orders FLNG studies

Nigeria's UTM Offshore has hired Japan's JGC and US firm KBR to study its plan for a floating LNG project, capable of exporting up to 176mn ft³/day (1.8bn m³/yr) of gas.

UTM signed a contract on May 11 with JGC for pre-front end engineering design work on the plan, the Nigerian Investment Promotion Commission reported on the same day. It reached a second agreement with KBR to carry out a third-party review of JGC's findings.

UTM plans to produce 1.2mn metric tons/year of LNG using gas resources at the Yoho field within the shallow water OML104 block, operated by ExxonMobil and state-owned NNPC and already flowing oil. The FLNG is expected up and running on 2025, depending on study results.

"UTM Offshore's FLNG project is the most logical continuation of our group as Nigeria embarks on a new era of gas monetisation and local content development," UTM CEO Julius Rone said. "Nigerian companies have built the necessary capabilities to execute such ambitious projects and we intend to open up a whole new segment of the industry that brings positive environmental benefits to the country while continuing to build local capacities across the value-chain."

It would be the first FLNG to be deployed in the West African state and its launch would bring an end to Nigeria LNG (NLNG)'s monopoly over LNG exports. NLNG, whose shareholders are NNPC, Shell, Total and Eni, operates Nigeria's only active LNG terminal. Its current capacity is 22mn mt/yr, although the consortium took a final investment decision in December 2019 on adding a seventh train and undertaking other upgrades to raise output to 30mn mt/yr in 2024.

Nigeria's department of petroleum resources issued a licence for the FLNG plant in February, valid for two years. In that time UTM must take a final investment decision. The company has not said whether it will order a new FLNG unit or use an existing vessel.