Rone Eyes September for Nigeria's First Floating LNG Plant

Nigeria's first floating liquefied natural gas plant is one step closer to reality. Julius Rone, Group Managing Director of UTM Offshore, aims to make a Final Investment Decision by September.

The $3 billion project will sit 60 kilometers off Akwa Ibom State at the Yoho field, processing gas that currently has nowhere to go. Instead of waiting for extensive onshore infrastructure, the floating model captures, liquefies, and ships gas without it being built on land.

Rone's team has already secured feed gas through a 15-year Wet Gas Sale and Purchase Agreement with NNPC Limited and Seplat Energy, guaranteeing around 200 million standard cubic feet of gas daily. Financing has also been committed by Afreximbank for $350 million, while NNPC Limited holds a 20% equity stake and the Delta State Government owns eight percent.

The plant is expected to export around 1.5 to 1.8 million tonnes of LNG annually and supply 300,000 to 500,000 tonnes of cooking gas locally, meeting roughly a quarter of Nigeria's domestic LPG demand.