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Chief Executive Officer of UTM Offshore, Julius Rone, has announced that construction of Nigeria first floating liquefied natural gas facility will begin in 2026, a development widely seen as a breakthrough for the country gas industry.
Rone made the announcement while receiving The Sun Newspaper Investor of the Year award, an honour that coincided with what industry watchers describe as a defining moment for Nigeria efforts to unlock its vast natural gas resources.
Addressing guests at the award ceremony, Rone confirmed that the long anticipated UTM Offshore floating LNG project has formally entered the construction phase. He said the development places Nigeria among a select group of nations with offshore LNG production capability.
Rone said that the project is the result of years of preparation and hard work to turn Nigeria's gas potential into real economic value. He said that the move into construction was a key turning point that showed they were ready to follow through on promises made to investors and partners.
Rone attributed the progress of the project to recent policy reforms introduced by the administration of President Bola Ahmed Tinubu. He said incentives and regulatory clarity under the Renewed Hope Agenda have strengthened investor confidence in the gas sector.
He added that the federal government has created conditions that encourage long term capital investment, particularly in gas development, which remains central to Nigeria energy transition and economic diversification plans.
The UTM Offshore floating LNG facility is located at the Yoho Field within Oil Mining Lease 104, roughly sixty kilometres offshore in the Niger Delta. When it's finished, the plant should be able to manufacture 1.5 million tons of LNG for export and 300,000 tons of liquefied petroleum gas for use in the country.
The project is supported by an estimated 2.2 trillion cubic feet of proven gas reserves, which are expected to sustain production for about twenty years. Beyond export earnings, Rone said the project will help Nigeria reduce dependence on imported cooking gas.
He noted that the facility will significantly increase domestic LPG availability, allowing the country to meet a large share of its own demand. He said the supply of 300,000 metric tonnes annually from the project alone would strengthen energy security for households and businesses.
Rone also highlighted the broader economic impact, pointing to job creation, local capacity development and increased revenue generation across the value chain.
The financing structure reflects strong investor backing. UTM Offshore has Afreximbank as its main lender, and it has raised $2 billion for the first phase of construction. It plans to raise another $3 billion for the second phase.s planned for the second phase.
The Nigerian National Petroleum Company Limited owns 20 percent of the equity, the Delta State Government owns 8 percent, and UTM FLNG owns the other 72 percent.
Industry analysts say the project represents a critical test of Nigeria ability to deliver large scale energy infrastructure led by indigenous companies, with Rone leadership now firmly in the spotlight.
