Cooking Gas Price Set to Crash as FG Grants Licence to Construct Floating LNG
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority granted a license to construct to UTM Offshore
- The Authority Chief Executive claimed that in August 2023, the license to establish was renewed
- He asserted that the boost in LNG demand was the reason behind the project's capacity increase from 1.2 MTPA to 2.8 MTPA
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
UTM Offshore has been granted a license to construct (LTC) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for Nigeria's first floating LNG project.
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The Authority Chief Executive, Engineer Farouk Ahmed, stated during the issuing event in Abuja that the project in OML 104 in Akwa Ibom was established with the goal of processing 324 million metric standard cubic feet of natural gas per day.
He said:
“The event of today is to issue LTC to UTM offshore for their FLNG Project which has the objective of establishing a Floating facility offshore Akwa Ibom State (OML 104) that will process 324 MMSCFD of natural gas and produce 2.8 million Tonnes Per Annum (TPA) of LNG.”
The NMDPRA director stated that after analyzing 176 MMSCFD, the NMDPRA granted UTM Offshore a "License to Establish (LTE)" 1.2 MTPA facility in February 2021. He claimed that in August 2023, the license to establish was renewed.
He claimed in a Bloomberg report that the project's capacity was increased from 1.2 MTPA to 2.8 MTPA as a result of the rise in LNG demand.
Ahmed also mentioned that a 324 MMSCFD feed gas increase was necessary for this upgrade from 176 MMSCFD.
The firm then filed pertinent Engineering Design Packages for Authority and applied for a license to construct, he added.
After reviewing the submission, he noted that the NMDPRA deemed it satisfactory and was now awarding the corporation a "licence to construct".
He called the occasion an important turning point toward the development of Nigeria's first floating LNG project.
According to Ahmed, the project is in line with the primary goals of the PIA 2021, which include the development of Nigeria's midstream gas facilities.
Additionally, it is consistent with the goals of the Decade of Gas Program and other current administration-wide gas expansion projects.
According to him, the project is expected to be put into service in 2028. Additionally, the project produces condensate, liquified petroleum gas (LPG), and liquified natural gas (LNG).
LPG and LNG are made up of the same elements in different quantities. However, LPG or cooking gas is a clean-burning and efficient cooking fuel.
He pledged that the NMDPRA would continue to serve as the project's compass during its entire duration, ensuring adherence to all legal requirements for environmental protection, safety assurance, sustainable operations, and general good governance standards.
Regulator hails FG
Ahmed praised President Bola Ahmed Tinubu for his outstanding leadership, which has demonstrated his clear goals for the petroleum sector.
According to Farouk, this entails the country's industrialisation through the accelerated execution of the PIA 2021 and the growth of the midstream gas sector.
"In fact, our plentiful natural gas resources are anticipated to give the nation the impetus for development and prosperity," he remarked.
Companies announce free 3kg, 6kg cooking gas
Legit.ng reported that with a short to medium-term goal of reaching over 500,000 homes, Women in Energy Network (WIEN), in collaboration with Smart Gas Limited, was looking to distribute 100,000 units of 3kg and 6kg gas cylinders to households across the 774 LGAs.
The recent LPG distribution initiative serves as a critical step in line with the nation's fuel diversification and economic sustainability goals, according to WEIN President Eyono Fatai-Williams.
She mentioned the health advantages of switching to LPG and emphasised how lowering household air pollution contributes to better public health.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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