Global Floating LNG boom brightens prospects for Nigeria’s multi-billion-dollar UTM Offshore project

With global investment in floating LNG infrastructure gathering pace and demand for cleaner energy expected to remain robust over the coming decades, they believe Nigeria’s first indigenous FLNG project has the potential to strengthen the country’s position in the global LNG market, unlock significant value from its vast offshore gas resources and support the Federal Government’s drive to monetise its abundant natural gas reserves.

The development comes as Nigeria’s UTM Offshore recently secured a 15-year gas supply agreement with the joint venture between NNPC Limited and its partners, clearing one of the biggest hurdles to taking the Final Investment Decision, FID on the country’s first indigenous floating LNG project.

For Nigeria, floating LNG technology offers several benefits, including eliminating the need for expensive onshore liquefaction plants, shortening construction timelines, lowering upfront capital investment, enabling gas to be processed closer to offshore production fields, accelerating the commercialisation of stranded gas resources and reducing many of the environmental and land acquisition challenges associated with onshore facilities.