Executive Governor of Delta State, Rt. Hon. Sheriff Oborevwori has assured Nigerians, particularly Deltans of adequate supply of cooking gas to the domestic market after completion of the first Floating Liquefied Natural Gas, FLNG, in Nigeria.
Speaking at the signing ceremony at the NNPC Towers in Abuja, Governor Oborevwori said the state government has 8% equity in the floating LNG project. He noted that the project is of strategic importance to the national economy, adding that with 40% of Nigeria’s proven gas reserves in Delta State, it was a worthy investment.
In a statement released in Abuja on Wednesday, Igho Akeregha, Executive Assistant to the Delta State Governor on Media said the State Government, Nigerian National Petroleum Company Limited and the UTM Offshore Limited signed the historic Shareholders Agreement for the development of the first ever Floating Liquefied Natural Gas, FLNG marking a major breakthrough for domestic cooking gas supply in the country.
The statement noted that UTM FLNG Project was the first of its kind to be developed by an indigenous private company in Nigeria.
Secretary to the State Government, Dr Kingsley Emu and Solicitor General and Permanent Secretary Ministry of Justice, Mr Omamuzo Erebe signed for the Delta State Government, while the Group Chief Executive Officer, Mr. Mele Kyari and Group Managing Director Julius Rone signed for NNPC Limited and UTM Offshore, respectively.
With the agreement Delta State Government will own eight percent share of the project, NNPC Limited 20 percent and UTM Offshore 72 percent.
The statement quoted Oborevwori as saying the deal marked a significant milestone in the development of the project, expressing hope that construction will begin next year.
Oborevwori noted that of particular interest to Delta State Government, “is the dividend that the UTM FLNG will generate, thus advancing the socio-economic development of our great state. It is expected that over 300,000 metric tonnes of LPG (cooking gas) will be produced and dedicated to the domestic market”.
“This project will also help to mitigate the environmental hazards in the Niger Delta by reducing gas flaring. Of course, our women folk will also benefit from the fuel switch from kerosene and firewood to cleaner energy, thus improving their health and general wellbeing.
Another benefit we envisage with this project is that it will create job opportunities for our youths, which is one of the four pillars of our MORE agenda”.
While commending the immediate past Governor, Senator Ifeanyi Okowa for his foresight in investing in the venture, Oborevwori expressed appreciation to other stakeholders “like regulators and Afreximbank for helping to arrange financing, the dedicated staff of Delta State Investment and Development Agency (DIDA) for their resourcefulness.
In his remarks, the Group Chief Executive Officer, NNPC, Mr Mele Kyari commended the Delta State Governor for not just being a promoter of gas development in the country but for also investing in gas projects.
Kyari said “we are happy to collaborate with the Delta State Government in this venture. The State Government is here in two capacities, one as a supporter of growing gas utilization in the country and also now as an investor in this necessary industry but potentially a valuable industry for all of us”.
Also speaking, the Minister of State Petroleum Resources (Gas), Hon. Ekprikpe Ekpo noted that it was time for the country to begin the monetisation of its huge gas reserves for the development of the economy.
Group Managing Director of UTM, Mr. Julius Rone, in his remarks said the signing ceremony marks another significant milestone in actualizing Nigeria’s first indigenous FLNG.
“I want to thank the Delta State Government for taking an equity on this laudable project which will create other sources of revenue for the state to develop their infrastructure that is highly needed and create employment for the teeming youths of Delta State”, Rone said.
While commending the stakeholders for their support, especially the Delta State Government for investing in the project, Mr. Rone said he expects the Final Investment Decision (FID) on the project to be taken before the end of the first quarter of 2024.