Nigeria's First Floating LNG Project Gets Boost with 15-Year Gas Deal

The Pan Niger Delta Forum (PANDEF) has lauded President Bola Tinubu's administration for approving a crucial 15-year gas supply framework for UTM Offshore Limited. This landmark decision paves the way for the construction of Nigeria's inaugural Floating Liquefied Natural Gas (FLNG) facility, a project spearheaded by an indigenous company operating within the Niger Delta.

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PANDEF considers your approval of this gas supply momentous as it will add significantly to the efforts which are at different levels to bring about the rapid industrialisation of the Niger Delta.

Ambassador Godknows Igali, National Chairman of PANDEF, described the approval as a significant boost for industrialization and economic development in the region. The multi-billion-dollar FLNG project, slated for offshore Akwa Ibom State, is expected to generate substantial economic activity not only within the Niger Delta but across Nigeria.

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In this case, the multi-billion-dollar construction of this floating LNG which is intended to be located offshore Akwa Ibom State will engender rapid economic development in the whole Niger Delta and Nigeria at large.

Igali highlighted that the project would bolster the development of Nigeria's gas sector, emphasizing increased participation by local companies. He noted that such investments are vital for cultivating a gas-based economy and could lead to improved domestic gas access, helping to curb soaring domestic and industrial gas prices. Furthermore, PANDEF anticipates the project will contribute to mitigating gas flaring and its associated environmental pollution in the Niger Delta.

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Even at the social level, we are hopeful that this project and many like it which will come in the future will help to raise the standard of living of people of the area, by stemming the tide of skyrocketing domestic and industrial gas prices.

PANDEF also commended UTM Offshore Limited and its Managing Director, Dr. Julius Rone, viewing the project as an inspiration for other indigenous entrepreneurs. The forum pledged its support to the Federal Government, particularly in mobilizing stakeholders to ensure a conducive environment for the project's successful implementation and adherence to timelines. PANDEF urged the government to continue providing necessary support to the project team.

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At another level, this will also help to combat the scourge of gas flaring which has for many decades contributed to pollution in the area.