KEY POINTS
- Nigeria FLNG project construction set for 2026.
- Nigeria FLNG project to produce 1.5m tonnes LNG yearly.
- Nigeria FLNG project backed by $5bn financing.
UTM Offshore plans to begin construction of Nigeria FLNG project in 2026, marking a significant milestone in efforts to monetise the country’s offshore gas reserves.
Chief Executive Officer Julius Rone disclosed the timeline in Lagos while receiving the Investor of the Year award at the 2026 Sun Newspaper Awards. He said the long-anticipated floating liquefied natural gas facility has moved from regulatory planning into execution.
“This year, we are entering the construction phase,” Rone said, signalling that the Nigeria FLNG project is advancing after years of preparation.
Nigeria FLNG project targets offshore reserves
The floating facility will be located at the Yoho Field, Oil Mining Lease 104, roughly 60 kilometres off the Niger Delta coast.Once operational, the plant will produce 1.5 million tonnes of LNG annually for export and 300,000 tonnes of liquefied petroleum gas for domestic consumption.
Developers backed the project with about 2.2 trillion cubic feet of proven gas reserves and designed the plant to operate for at least 20 years. Rone said domestic LPG supply forms a core part of the strategy, with projected output capable of replacing at least a quarter of Nigeria’s current LPG imports.
Nigeria holds some of Africa’s largest gas reserves, yet significant volumes remain undeveloped. Floating LNG technology allows offshore resources to be processed at sea, reducing the need for costly onshore infrastructure.
The project secures financing
Afreximbank is leading financing for the Nigeria FLNG project, mobilising $2 billion for Phase One. Project sponsors have arranged a further $3 billion for Phase Two, bringing total projected funding to $5 billion.
Engineering partners include JGC Holdings, Technip Energies and KBR. UTM Offshore said it has completed the environmental and social impact assessments, clearing key regulatory hurdles.
According to Billionaires Africa, Rone credited recent policy reforms with improving the investment climate for gas development. He said clearer regulatory frameworks and targeted incentives have supported long-term capital commitments.
Beyond export earnings, the project is expected to create thousands of jobs during construction and operations. Industry participants also say successful delivery could encourage additional floating LNG developments along Nigeria’s coastline, strengthening efforts to diversify revenue away from crude oil.
