UTM offshore gets construction licence for 2.8m tonnes floating LNG facility

….says the project to be commissioned by 2028

The Federal Government on Friday, issued a Licence to Construct (LTC) a 2.8 million tonnes per annum (MTPA) Floating Liquefied Natural Gas (FLNG) facility to UTM Offshore Limited, being the first of its kind in Nigeria.

Speaking during the event in Abuja, Ekperipe Ekpo, the Minister of State, Petroleum Resources (Gas), said that the project was in line with President Tinubu’s mandate to develop the nation’s gas sector for economic growth.

“This is in line with the mission of President Bola Tinubu, to grow gas production, distribution and utilisation. In line with the Decade of Gas Initiative, we are looking at gas driving the economy of this nation come 2030. We are going to achieve that.

“I salute NMDPRA for due diligence, and I salute the CEO of UTM LNG, for the bold step him and his team have taken to bring to work what we are going to celebrate today. I believe that after this presentation and celebration, all other things that need to be done to make sure the dream of today is realised tomorrow will be done,” he said.

In his remarks, Farouk Ahmed, the Chief Executive of, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said that the project, located offshore Akwa Ibom State in OML 104, would process 324 million standard cubic feet per day (MMSCFD) of natural gas.

He disclosed that the project is expected to be commissioned by 2028, adding that the products from the project include would include Liquified Natural Gas, LPG, and condensate.

He said, “The project aligns with the main aspirations of the PIA 2021 which include the expansion of Midstream Gas Facilities in Nigeria. It also aligns with the targets of the Decade of Gas Programme and other Gas expansion projects of the current Administration.

He pledged the Authority’s commitment to provide guidance and oversight for the project’s successful implementation while also ensuring it complied with all regulatory requirements throughout its lifecycle.

In his remarks, Julius Rone, the Managing Director, of UTM Offshore said, “This project is to bring into domestic market 500,000 metric tons of LPG to support domestic market per annum. Nigeria require over two million tons per annum so we are importing LPG for domestic market and everybody is paying expensive price for LPG.

“We are not going to export it, we are going to use it to support the domestic market; it will reduce the pressure on forex and will drastically reduce the price of cooking gas.”