Tinubu Backs $5BN Floating LNG Project to Develop Gas Resources

The President of Nigeria, Bola Ahmed Tinubu has stated that the Federal Government will be working along with the Nigerian company UTM Floating Liquefied Natural Gas Limited and its international partners in order for their floating gas project to be completed on schedule.

It was made known on Wednesday at the State House in Abuja while hosting the company's management and foreign partners, Bola Tinubu promised to remove anything that will hinder the quick completion of the project—this was made known in the release issued by his Special Adviser on Special Duties, Communications, and Strategy, Mr Dele Alake.

“It is a must for any government to support. Let me know if there are any bottlecks, we will break them”.

“Yes, we have abundance of gas on the ground. However, the  extractive industry needs the injection of your kind of partnership to be able to promote growth.”

The President also commended the firm for its investment to see the nation prosper and pledges his support to the development and environmental preservation.

Mr Julius Rone, Managing Director, and Chief Executive Officer of UTM Offshore Limited, who briefed the President earlier, said that the project reflects President Tinubu's commitment to growing Nigerian gas resources as a source of sustainable energy and economic growth for the nation. 

He said that when the plant comes to completion in Q4 2026, it would be able to process 1.5 million metric tonnes of Liquefied Natural Gas for the international market and generate 300,000 metric tonnes of Liquefied Petroleum Gas (LPG) for local usage. 

Rone further stated that the firm will meet 25% of domestic LPG demand. As a result, he sought President Tinubu's assistance in removing any impediments that would jeopardize the project's completion before the deadline. 

Also on that note, Emmanuelle Blatmann, the French Ambassador to Nigeria, praised the initiative as an important milestone for France's economic involvement in Nigeria. 

She said that the facility will help the Federal Government's economic diversification drive by tapping into the country's enormous petroleum resource. She said that if supplied, the gas from Nigeria will be a viable alternative supplier of gas for Europe. 

Rone told reporters after meeting with the President and CEO of UTM Offshore Limited that the multi-floating LNGs are being built with a $5 billion loan from AFREXIMBank.

In his words, he said that President Tinubu has guaranteed that his government would offer full backing for the project since it fits with his plan to revitalize the economy and create more employment.

According to Rone, the facility has a capacity of 300,000 tonnes of Liquefied Petroleum Gas (LPG) per year and would offer 7,000 direct employment for Nigerians.

He said that this was the first time in Nigeria that an indigenous enterprise will be participating in a decarbonization initiative.

Rone noted that the floating LNG plant, Nigeria's first, is anticipated to begin operations in the first quarter of 2026.

He also mentioned the President's guarantee that the project will be completed on time.

“Mr. President said there is no obstacle to deliver this project.  That we will have this project delivered is a must, is not if we want to do it, that we should take it and go back that this project will be delivered and any obstacle we envisage on the way we should not waste time to get back to him through the Chief of Staff and the other officials working directly with him. 

“So for us that is an assurance to continue to invest our money that is quite assuring for the investors that came all the way from Japan and Paris to visit Mr. President because they believe in this project. 

So by the special grace of God, Nigeria, we will have our first floating LNG fourth quarter in 2026″.

The FLNG project also includes the construction and funding of a 1.2 million-tonne-per-year plant capable of processing 176 million standard cubic feet of natural gas and condensate per day.