Tinubu Pledges Support For $5b Floating LNG Project

President Bola Tinubu has expressed his support for the development of a $5 billion Floating Liquefied Natural Gas (FLNG) project, first of its kind in the country.

President Tinubu promised his support when he received a group of joint venture partners made up of UTM FLNG, TECHNIP Energies and JGC Corporation in his office at the Presidential Villa, Abuja.

The JV partners were accompanied to the Presidential Villa by the French Ambassador to Nigeria, Ms Emmanuelle Blatmann, and the Japanese Deputy Ambassador to Nigeria, Ms Hiromi Otuski. JGC Corporation and Technip Energies are French and Japanese concerns respectively.

Speaking to State House correspondents after the meeting with the President, leader of the delegation and the Group Managing Director (GMD) of UTM FLNG, Julius Rone, revealed that the multiple floating LNG are being implemented with a $5 billion loan from AFRIEXIM Bank.

He said Tinubu has assured that his administration would provide full support for the project because it fits into his programme to revive the economy and provide more jobs.

According to him, the project, which is expected to become operational from the first quarter of 2026, has the capacity of producing 300,000 tons of LPG per year and would provide 7,000 direct jobs for Nigerians.

He said it was the first time in Nigeria that an indigenous company would be involved in such project that would contribute to decarbonization.

“We are developing the first floating LNG in Nigeria in conjunction with the National Petroleum Corporation Corporation (NNPC). This is the first time an indigenous company from Africa is taking on such projects. We’ve just gotten one of the best day in our transaction.

“Mr. President, has given us all the assurances and full support for this project. For us, we’re excited because Mr. President spoke very highly of the need to develop our gas resources and he believes in the floating LNG technology. And he assured us that there will be no stones left to us to deliver this project as planned and scheduled.

“So we are happy that we secured Mr. President’s support for this project. And he assured us that anything that we’ll require, that we need to get this project off the ground, to get it to completion, he will definitely give us 110% and my colleagues here cannot testify to that assurance that we got from Mr. President.

“Mr. President said there is no obstacle to hinder the delivery of this project. That we will have this project delivered is a must, is not if we want to do it. He said that we should take it and go back that this project will be delivered and any obstacle we envisage on the way we should not waste time get back to him through the Chief of Staff and the other officials working directly with him.

“So for us that is an assurance to continue to invest our money and that is quite a assuring for the investors that came all the way from Japan and Paris to visit Mr. President because they believe in this project. So by the special grace of God, Nigeria, we will have our first floating LNG fourth quarter in 2026”, he explained.

He assured that the project will serve as a legacy project under the Tinubu administration in the quest to revitalize the nation’s economy, rejuvenate the productive sector, create jobs and investment opportunities while saving millions of Nigerians from the hazards of environmental pollution.

The investor explained that the FLNG facility will be anchored offshore in Akwa Ibom State in about 60m water depth.

Rone revealed what he told the President in separate statement, saying: “We believe the project is coming at the right time in line with your Renewed Hope agenda of leapfrogging Nigeria’s socio-economic development by sustainably developing our enormous gas resources.

“When completed in Q4 2026, the facility will produce on annual basis, 1.5 million tonnes of LNG for export, 300,000 metric tonnes of LPG for domestic market (DLPG) and some quantities of condensate.

“300,000 metric tonnes of LPG production which will be dedicated to domestic market (DLPG) represents 25 per cent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for auto gas and other industrial purposes among others.

“Moreover, about 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.

“Also, LPG addresses deforestation, helps reduce mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating flaring of Associated Gas, Nigeria can meet its Climate Change goals and this project is one such enabler.”

He commended the Tinubu administration for its commitment in providing access to clean, accessible, affordable, available and abundant energy for all Nigerians and reiterated UTM’s commitment to partner the Federal Governemnt to realise this agenda.

He explained that the FLNG facility will be anchored offshore in Akwa Ibom State in about 60m water depth.

“We believe the project is coming at the right time in line with your Renewed Hope agenda of leapfrogging Nigeria’s socio-economic development by sustainably developing our enormous gas resources.

“When completed in Q4 2026, the facility will produce on annual basis, 1.5 million tonnes of LNG for export, 300,000 metric tonnes of LPG for domestic market (DLPG) and some quantities of condensate.

“300,000 metric tonnes of LPG production which will be dedicated to domestic market (DLPG) represents 25 per cent of national demand and will go a long way at stabilising the price of cooking gas in addition to its possible use for auto gas and other industrial purposes among others. Moreover, about 3000 direct jobs and 4000 indirect jobs will be generated in addition to value creation along the LPG Supply Chain.

“Also, LPG addresses deforestation, helps reduce mortality rate of our women folk as a result of smoke inhalation from the use of firewood. By eliminating flaring of Associated Gas, Nigeria can meet its Climate Change goals and this project is one such enabler”, he told the President.