Floating LNG Nigeria ESIA
Oil and Gas
UTM FLNG Limited is pioneering the development of the FLNG facility in collaboration with LNG Investment Management Services, a Nigeria National Petroleum Corporation (NNPC) subsidiary. The proposed FLNG facility with a Liquified Natural Gas (LNG) production capacity of 1.2 million metric tons per annum and a storage capacity of 200,000 cubic meters, together with its ancillary facilities, will be located on the Yoho crude oil field (OML 104) 60km offshore of Akwa Ibom State, Nigeria.
In February 2021, UTM FLNG Limited received a license to operate the FLNG on Oil Mining Lease (OML) 104 from Nigeria’s former Department of Petroleum Resources (DPR). The OML 104 is managed by the joint-venture of ExxonMobil (operator, with 40 percent equity) and the NNPC, with 60 percent equity in the offshore Yoho Field.
The African Export-Import Bank (Afreximbank), which considers the project of historical significance being the first FLNG project developed by an African-owned company on the continent, has signed a Memorandum of Understanding (MoU) to raise funds for the development of the project. The project has economically transformative potential in that it will help establish a trade-enabling infrastructure, ensure the monetization of Nigeria’s natural resources, and pivot from a crude oil export-based economy to a gas-based processing industrial economy.
The project will generate exports estimated at a minimum of $11.4 billion from Nigeria to the rest of the world, creating over 2,000 construction jobs and a minimum of 1,000 high-quality jobs. The project, which will significantly contribute to the Nigerian government’s agenda of reducing gas flares, will help to cut carbon emissions and monetize additional reserves for domestic and global markets