UTM Offshore, a pioneering local company within Nigeria's liquefied natural gas (LNG) sector, has achieved a significant milestone in its ambitious project to establish the nation's first floating natural gas liquefaction unit. In a recent engagement with the Nigerian Content Development and Monitoring Board (NCDMB), UTM Offshore confirmed that it had secured all necessary approvals for the Engineering, Procurement, Construction, Installation, and Commissioning (EPCIC) phase of the project. Julius Rone, the Managing Director, underscored the company's unwavering commitment to quality and compliance, while also recognizing the instrumental support provided by the NCDMB.

This milestone follows a pivotal agreement finalized in July 2023 between NNPC Ltd and UTM Offshore to launch Nigeria's inaugural Floating Liquefied Natural Gas (FLNG) project. Boasting an operational capacity of 1.5 million tonnes of LNG per annum, UTM Offshore's facility is set to exploit approximately 2.2 trillion cubic feet of gas located in OML 104, specifically within the Yoho field operated by ExxonMobil.

The project's final investment decision is scheduled for announcement in the first quarter of 2024, with operational commencement targeted for the fourth quarter of 2026. Significantly, the UTM Offshore facility, with majority ownership held by UTM FLNG in partnership with NNPC Ltd (20%) and the Delta State government (8%), is poised to fulfill 25% of Nigeria's domestic demand for liquefied petroleum gas (LPG), marking a pivotal contribution towards the nation's energy sustainability goals.