NNPC, UTM signs pact on Nigeria FLNG project

The Nigerian National Petroleum Corporation (NNPC) and UTM Offshore have signed a heads of terms for the construction of Nigeria's first indigenous floating LNG project, NNPC said on July 20.

The GCEO of NNPC, Mele Kyari, expressed the company's commitment to securing the necessary gas feedstock for the project, emphasising its importance as a "must-do" initiative for Nigeria.

Last November, a consortium of Japan’s JGC Corporation, France's Technip Energies and US-based KBR was awarded the contract by UTM for the front end engineering and design (FEED) of the 1.5mn tonnes/year FLNG facility.

The FLNG project is expected to have multiple benefits, NNPC said, adding that it will significantly reduce gas flaring, supporting Nigeria's commitment to reducing carbon emissions and promoting environmental sustainability.

Abuja-based UTM is undertaking the development, design, and construction of an FLNG facility in block OML 204 offshore Nigeria.

The African Export-Import Bank (Afreximbank) had in July 2022 executed a head of terms with UTM to part-finance the project. This will be Nigeria’s first FLNG facility.