Nigerian gas tycoon Julius Rone, CEO of UTM Offshore, has announced that construction of Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility will begin in 2026, marking a significant milestone in the country’s energy ambitions.
The project, valued at $5 billion, will be sited at the Yoho Field, Oil Mining Lease 104, approximately 60 kilometers off the Niger Delta coast.
The FLNG facility is expected to produce 1.5 million tonnes of liquefied natural gas annually for export markets, while also delivering 300,000 tonnes of liquefied petroleum gas (LPG) each year for domestic use.
This aligns with Nigeria’s efforts to expand access to locally produced cooking gas and reduce reliance on imports.
Rone emphasized that the plant’s LPG output could eliminate at least one quarter of Nigeria’s current LPG imports, moving the country towards self-sufficiency.
The project is backed by an estimated 2.2 trillion cubic feet of proven gas reserves and is designed to operate for at least 20 years. Afreximbank is leading the funding arrangement, mobilizing $2 billion for Phase One, with an additional $3 billion secured for Phase Two.
Global engineering firms JGC Holdings, Technip Energies, and KBR are among the strategic partners supporting the development.
Rone credited recent policy reforms under President Bola Ahmed Tinubu for creating a more predictable climate for investors, encouraging long-term capital commitments in the gas sector.
The project is expected to generate thousands of jobs during construction and operation, while also strengthening public finances and diversifying Nigeria’s energy exports.
The announcement comes as Nigeria seeks to unlock its vast gas reserves, with floating LNG technology offering a faster route to market.
Industry analysts say this project could open the door to additional floating LNG investments along Nigeria’s coastline, positioning the country as a key player in the global energy market.
