Nigeria: Julius Rone Sets September Target for Nigeria's First Floating LNG Plant

What the report says

Nigeria’s UTM Offshore is aiming for a September final investment decision on what would be the country’s first floating liquefied natural gas plant, according to This Day, as distributed by AllAfrica. The project is being led by Julius Rone, the company’s group managing director, and is tied to efforts to reduce gas flaring and better monetize gas resources in the Niger Delta.

The proposed facility is estimated at about $3 billion and would be located roughly 60 kilometres offshore Akwa Ibom State at the Yoho field. Unlike a traditional onshore LNG project, the floating design is intended to capture and process gas at sea, avoiding the need to first build extensive land-based infrastructure. The report says feed gas has already been secured through a 15-year wet gas sale and purchase agreement with NNPC Limited and Seplat Energy, covering about 200 million standard cubic feet per day.

If approved and built, the plant is expected to export around 1.5 million to 1.8 million tonnes of LNG a year and also supply cooking gas for the domestic market, with output estimated at 300,000 to 500,000 tonnes annually. The article says this could meet about a quarter of Nigeria’s LPG demand. Financing and technical support are also reported to be in place, including a $350 million commitment from Afreximbank, a 20% stake for NNPC Limited, and an 8% stake for the Delta State Government.

The project’s backers include JGC Corporation of Japan and Technip Energies of France, while Warri in Delta State would host the headquarters. The timing matters because Nigeria has long discussed major gas projects that did not advance to completion; this one appears closer to a final go-ahead, pending the September decision.