Eunice Imo Kalu
Lagos — The Nigerian National Petroleum Company Limited, NNPC, Delta State Government, and UTM Offshore Ltd have signed a shareholders’ agreement for the development of the first Floating Liquefied Natural Gas, FLNG, project in Nigeria.
The deal, signed at the NNPC Towers in Abuja, marks a significant step towards eliminating energy poverty and advancing the continent’s gas monetisation agenda.
Representing the Delta state government, Kingsley Emu, the Secretary to the State Government, SSG, together with Omamuzo Erebe, Solicitor General and Permanent Secretary of the Ministry of Justice, authorised the agreement. On the other hand, the Group Chief Executive Officer of the NNPC, Mele Kyari, and the Group Managing Director of UTM Offshore, Julius Rone, signed on behalf of their companies.
Under the agreement, Delta State is taking an 8% stake in the project, NNPC 20%, while UTM gets 72%.
Speaking at the signing ceremony at the NNPC Towers Abuja, the Governor of Delta State, Mr Sheriff Oborevwori said that Delta State was particularly interested in the socio-economic benefits, noting the expected delivery of more than 300,000 tonnes of LPG from the project that would go to the domestic market.
He said: “Of particular interest to Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socio-economic development of our great state. It is expected that over 300,000 metric tonnes of LPG (cooking gas) will be produced and dedicated to the domestic market.
“This project will also help to mitigate the environmental hazards in the Niger Delta by reducing gas flaring. Of course, our women folk will also benefit from the fuel switch from kerosene and firewood to cleaner energy, thus improving their health and general wellbeing.
“Another benefit we envisage with this project is that it will create job opportunities for our youths, which is one of the four pillars of our MORE agenda”.
Mr. Mele Kyari, Group Chief Executive Officer of NNPC, in his remark applauded Governor Oborevwori for promoting gas development in the country and for investing in gas projects. He expressed happiness in collaborating with the Delta State Government and acknowledged its dual role as a supporter of growing gas utilization and an investor in the industry.
“We are happy to collaborate with the Delta State Government in this venture. The State Government is here in two capacities, one as a supporter of growing gas utilisation in the country and also now as an investor in this necessary industry but potentially a valuable industry for all of us,” he noted.
Also speaking, the Minister of State Petroleum Resources (Gas), Hon. Ekprikpe Ekpo mentioned that it was time for the country to begin the monitisation of its huge gas reserves for the development of the economy.
In his remarks, Group Managing Director of UTM, Mr. Julius Rone said the signing ceremony marks another significant milestone in actualizing Nigeria’s first indigenous FLNG.
Mr. Rone said he expects the Final Investment Decision, FID, on the project to be taken before the end of the first quarter of 2024. He commended the stakeholders for their support, especially the Delta State Government for investing in the project.
