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Nigerian National Petroleum Corporation (NNPC) and UTM Offshore have signed a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous floating LNG project.
Nigerian National Petroleum Corporation (NNPC) and UTM Offshore have signed a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous floating LNG project.
The agreement, described as a major step towards bolstering Nigeria’s energy security and promoting the utilization of its abundant gas resources, was signed on 20 July in Abuja.
It covers the 1.5 million tonnes per annum (mtpa) floating LNG project which is seen as a “must-do” initiative for Nigeria.
On the occasion of the agreement signing, NNPC GCEO, Mele Kyari, OFR, expressed the company’s readiness to secure gas feedstock towards the project.
Group Managing Director at UTM Offshore Ltd., Julius Rone, stated that this milestone achievement showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector.
He further explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
For this project, UTM Offshore awarded the contract for the conceptual design service to JGC Corporation back in 2021. In late 2022, the consortium of JGC and Technip Energies secured the front-end engineering and design (FEED) contract.
The project is also supported by $5 billion from the African Export-Import Bank (Afreximbank). |
