PIA Already Improving Petroleum Industry’s Reputation, Easing Investments –
Abuja
Nigeria’s quest for energy transition received a boost when an indigenous firm, UTM Offshore Limited signed agreements with three technical partners, Kellogg Brown and Root (KBR) UK, Japan Gas Corporation (JGC) and TechnipEnergies Limited, for the commencement of the Front End Engineering Design (FEED) for Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility.
The agreements were signed at an event at the Hilton Park Lane, London, UK.
The FEED contract with the three firms essentially entails conducting for UTM Offshore Limited, various studies to figure out technical issues and estimate rough investment cost for the FLNG facility prior to the Engineering, Procurement and Construction (EPC) phase of the project. The time line for this phase of the FLNG project is 10 months.
The FEED contract signing is a follow up to the successful execution of the pre-FEED agreement between UTM Offshore Limited with JGC, a leading International Engineering Design, Procurement and Construction firm.
The Pre-FEED scope was completed within four months from commencement date.
KBR provided due diligence on the JGC scope by conducting a third-party review of all deliverables from JGC during the Pre-FEED.UTM Offshore Limited
entered into the pre-FEED agreement with JGC and KBR in May 2021.
Speaking at the FEED contract signing event, the minister of state for Petroleum Resources, Chief Timipre Sylva applauded the pioneering efforts of Mr. Julius Rone and UTM Offshore Limited.
He said the federal government will continue to support and create the enabling environment for business investments in the country, especially in the area of gas development.
The minister said, “The PIA is already improving the petroleum industry’s reputation, paving the way for new investments, creating jobs, supporting the economic diversification agenda and strengthening Nigeria’s ability to fulfil the world’s expanding energy demand.”
The minister reiterated the federal government’s determination to leverage on natural gas as the nation’s transition fuel with Floating LNG Technology as the game changer.
“As a developing nation, we believe that affordable, accessible and reliable energy will continue to be essential to sustaining and powering our growing economy, and to lift millions out of poverty,” he said.
He added that only gas can help to bridge the current energy gaps in the country.
While stressing the significance of innovation, technology and policy as key drivers of change in the energy sector, Sylva again maintained gas remains the solution to ensuring the country’s energy security, economic competitiveness, and a reduction of greenhouse gas emissions.
“We have already proclaimed that gas is our transition fuel and a destination fuel, and we anticipate that it will be a major component of our energy mix by the year 2060,” he added.
The minister noted that the UTM FLNG will target the processing of associated gas currently flared in order to cut carbon emissions and monetize additional reserves for the domestic and global markets.
He said this aligns with the federal government’s gas flare commercialisation program and the decade of gas agenda.
“There are generous incentives to enable development, distribution, penetration, and utilisation of gas,” Sylva said.
He added, that “this is why the UTM Offshore project will involve the development and financing of a 1.52 million tonnes per annum (MTPA) FLNG facility with a capacity to process 176 million standard cubic feet of natural gas per day and condensate.”