Floating Gas Plant Nigeria: Tycoon Julius Rone’s UTM Signs Design Contract in Nigeria

Nigerian oil and gas power player Julius Rone’s company, UTM, has officially launched its front-end engineering and design (FEED) project with KBR, JGC Corporation, and Technip Energies. The project, which will see the company become the first floating liquefied natural gas (FLNG) plant in Nigeria, was made possible with the signing of a memorandum of understanding with the African Export-Import Bank (Afreximbank).

With the $2 billion fund from Afreximbank, the project was moved from the fundraising to the implementation phase in collaboration with NNPC Limited and ExxonMobil to fasten its development, exploitation, and monetisation of gas resources.

Apart from the company being the first FLNG in Nigeria and Africa, its completion will change the demand narrative of natural gas and ensure energy security, access to energy, and clean cooking gas in Nigeria and within and beyond the continent.

The project, which is to be completed by 2027, will also serve as a significant opportunity for the company and country to tap into the supply of alternate gas due to the Russia-Ukraine conflict.

Julius Rone, the chief executive officer (CEO) of UTM Offshore, said that with its abundant gas reserves, Nigeria has what it takes to expand its supply to Europe. He believes that UTM’s FLNG project will catalyse industry growth and Nigeria’s best option in addressing some of the challenges in the industry.

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Julius Rone’s New FLNG facility

According to the African Energy Chamber (AEC), Julius Rone’s UTM facility move is commendable. With the different challenges affecting the energy industry, AEC strongly believes that the African gas sector has a significant role in changing the global economies and the global energy market.

NJ Ayuk, the Executive Chairman of AEC, said, “UTM Offshore CEO Julius Rone has been a true champion of gas in Nigeria and Africa. His resilience, patience and outside-the-box thinking with a savviness to bring so many world-class companies and service providers to this project is extraordinary. We commend Afreximbank’s President Oramah for making this project a reality.”

Regarding the impact of the development on Nigeria and Africa, he said, “With abundant gas reserves, remarkable technologies like FLNG, and an entrepreneurial spirit, Nigeria and Africa will move towards energy self-sufficiency. Julius’ gas investments will open the door to a previously unimagined opportunity that will help invigorate a slow post-Covid economic recovery, spur new investment, accelerate job creation and help us beat the twin evils of energy poverty and climate change. Ayuk concluded.

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