Nigerian National Petroleum Company (NNPC) has signed a heads of terms agreement with oil and gas company UTM Offshore for the construction of what is claimed to be the country’s first indigenous floating LNG (FLNG) project.
The UTM FLNG project is expected to produce 176 million cubic feet of gas per day from the Yoho Field located in Oil Mining Lease 104, offshore Nigeria, NNPC said in a Twitter post.
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The agreement outlines the terms of the NNPC’s 20% equity contribution to the FLNG project and is a major step towards strengthening the country’s energy security.
UTM Offshore group managing director Julius Rone said the project is expected to significantly reduce gas flaring while supporting the country’s commitment to cutting carbon emissions.
Furthermore, the project is anticipated to create more than 7,000 job opportunities and contribute to the nation’s economic development and growth.
NNPC gas, power and new energy executive vice-president Mohammed Abdulkabir Ahmed said that the project aligns with the company’s efforts to ensure energy availability, affordability and sustainability, while generating exports revenue.
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By GlobalDataAccording to energy advocacy group African Energy Chamber, the FLNG facility is due for completion by 2026.
The project will comprise a turret mooring system, gas pre-treatment modules, liquefied natural gas production modules, self-contained power generation, living quarters and utilities, alongside storage and offloading.
Africa’s biggest oil producer, Nigeria holds some of the world’s largest gas reserves. The country is looking to unlock its gas reserves and boost its domestic gas supplies and exports.
