The Delta State Government, Nigerian National Petroleum Company Limited (NNPCL), and UTM Offshore Ltd has signed a Shareholders Agreement for the development of Nigeria’s first Floating Liquefied Natural Gas (FLNG).
The signing ceremony, held at the NNPC Towers in Abuja, saw representatives from each entity solidifying their commitment to the project.
Delta State Government secured an 8% share, NNPC Limited a 20% stake, and UTM Offshore the majority share at 72%.
Governor Sheriff Oborevwori of Delta State expressed the strategic importance of the FLNG project to the national economy, emphasizing its potential to generate dividends, produce over 300,000 metric tonnes of LPG for the domestic market, and create job opportunities.
Governor Oborevwori also highlighted the environmental benefits, including the reduction of gas flaring and the positive impact on the health and wellbeing of the community.
The construction is anticipated to commence next year. The governor commended the foresight of the immediate past Governor, Senator Ifeanyi Okowa, and acknowledged the collaborative efforts of various stakeholders, signaling a significant milestone in the development of Nigeria’s indigenous FLNG industry.
Mele Kyari, the Group Chief Executive Officer of NNPC, commended Delta State’s dual role as a supporter and investor in gas projects, while the Group Managing Director of UTM, Julius Rone, expressed gratitude for the support, expecting the Final Investment Decision to be made by the end of the first quarter of 2024.
