Business

Tinubu Pledges Support For Completion Of Africa’s Largest $5bn Floating LNG Project

President Bola Tinubu has pledged the Federal Government’s  support for the Nigerian firm, UTM Floating Liquefied Natural Gas Limited, and it’s foreign partners for the timely actualisation of their floating gas project.

Speaking Wednesday at the State House, Abuja, while playing host to the  management of the company and its foreign partners, the President, according to a release issued by his Special Adviser on Special Duties, Communications and Strategy, Mr Dele Alake, promised to remove all impediments to the timely completion of the facility.

He said: “It is a must for any government to support. Let me know if there are any bottlecks, we will break them”.

President Tinubu commended UTM FLNG Limited as well as  its technical partners, Technip Energies of France, and its Japanese counterpart, JGC, for the initiative and partnership. 

“Yes, we have abundance of gas on the ground. However, the  extractive industry needs the injection of your kind of partnership to be able to promote growth. 

The President applauded the conglomerate for the massive investment which, he said, would promote growth and protection of the environment.

Briefing the President earlier, the Managing Director and Chief Executive Officer of UTM Offshore Limited, Mr. Julius Rone, said the project aligns with President Tinubu’s promise to develop Nigerian gas resources as a source of sustainable energy and economic development for the country. 

He said when the facility gets upstream by the Fourth Quarter of 2026, it would process 1.5 million meterric tonnes of Liquefied Natural Gas for foreign market, and produce 300,000 metric tonnes of Liquefied Petroleum Gas (LPG) for domestic use. 

Rone said the company would cater for 25 percent of domestic demand for LPG. 

He therefore solicited for President Tinubu’s support to eliminate any encumbrances that may endanger the delivery of the project by the targeted date. 

In her remarks, the French Ambassador to Nigeria, Emmanuelle Blatmann, described the project as a milestone, cementing the French presence in Nigeria’s economic space. 

The facility, she said, would advance the economic diversification agenda of the Federal Government by tapping into the country’s abundant gas deposit. 

When delivered, she said, the gas from Nigeria would be viable as an alternative source of gas for Europe. 

Speaking with newsmen after meeting with the President,  CEO of UTM Offshore Limited, Rone;disclosed that the multi-floating LNGs are being implemented with a $5 billion loan from AFRIEXIM Bank.

According to him, Presudent 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.

Rone revealed that the project has the capacity to produce 300,000 tons of Liquefied Petroleum Gas (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.

Rone added that the ffloating LNG project which is the first in Nigeria is expected to come on stream in the first quarter of 2026.

He also talked about the  President’s assurance towards delivering the project as scheduled.

His words: “Mr. President said there is no obstacle to deliver this project.  That we will have this project delivered is a must, is not if we want to do it, 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 to 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 that is quite 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″.

Deji Elumoye in Abuja 

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