NMDPRA Issues Licence To Construct Floating LNG

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued a Licence to Construct (LTC) to UTM Offshore for the First Floating LNG facility in Nigeria.
In his remarks at the issuance ceremony in Abuja, the Authority’s Chief Executive, Engr. Farouk Ahmed said the objective of establishing the project in OML 104 in Akwa Ibom State was to process 324 million metric standard cubic feet per day of natural gas.
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 boss recalled that in February 2021, the NMDPRA issued UTM Offshore with a ‘License to Establish (LTE)’ 1.2 MTPA facility by processing 176 MMSCFD.
According to him, the License to Establish was renewed in August 2023.
He said, due to increase in LNG demand, the project’s capacity was upgraded from 1.2 MTPA to 2.8 MTPA.
Ahmed added that this  upgrade required an increase in feed gas from 176 MMSCFD to 324 MMSCFD.
He further noted that the firm  subsequently applied for a Licence to Construct (LTC) and submitted relevant Engineering Design Packages for the Authority.
According to him, the NMDPRA reviewed the submission and found it satisfactory and is hereby granting the company a ‘Licence to Construct’ (LTC).
He described the event as a significant milestone in advancing the first floating LNG facility in Nigeria.
Ahmed said the project aligns with the main aspirations of the PIA 2021 which include the expansion of Midstream Gas Facilities in Nigeria.
It also aligns with the targets of the Decade of Gas Program and other Gas Expansions projects of the current administration.
He said the project is projected to be commissioned in the year 2028.
And the products from the project include LNG, LPG, and condensate.
He vowed that the NMDPRA would continue to guide this project throughout its lifespan, to ensure compliance with all regulatory requirement including the assurance of safety, protection of environment, sustainable operations and overall good governance principles.