Nigeria is making waves in trying to harness its vast gas reserves with the approval of its first floating liquefied natural gas (FLNG) facility. The project, led by UTM Offshore Limited, aims to convert flared gas into valuable LNG, reducing waste and generating revenue.
Despite holding over 209 trillion cubic feet of gas reserves, Nigeria loses about $1 billion annually due to the lack of infrastructure to process this resource into liquid natural gas.
LNG, a cleaner alternative to traditional fuels, is crucial for generating electricity in power plants.
The new facility, which will produce 2.8 million metric tons of LNG per year, marks a significant shift. Originally licensed in 2019 for a smaller operation, UTM Offshore’s project was upgraded due to rising demand for LNG.
The floating vessel will draw gas from an ExxonMobil oil field in Akwa Ibom and also produce 500,000 metric tons of liquefied petroleum gas for the domestic market, along with condensate.
Financing for the project comes from Afreximbank, which has secured $2.1 billion for the first phase of construction and committed an additional $3 billion for the second phase. The plant is expected to be commissioned in 2028, with gas production beginning the following year.
