Nigeria’s UTM Offshore to award FLNG FEED next month, CEO says

UTM Offshore is expecting to award the front-end engineering and design (FEED) contract for Nigeria’s first floating LNG project in April, according to the company’s managing director and chief executive, Julius Rone.

Last year, Japan’s JGC completed the pre-FEED work for the FLNG. As a result of this design work, the FLNG’s capacity will be boosted by some 26 percent to 1.52 mtpa.

UTM Offshore also selected US-based KBR as the owner’s engineer to review JGC’s work and said that trader Vitol had joined the consortium to offtake the project’s LNG.

Rone told LNG Prime on Wednesday that UTM Offshore is working with JGC and KBR as well as South Korean shipbuilding giant Samsung Heavy Industries on the FEED contract.

“We are planning to sign the contract on or before April 15,” Rone said.

Nigeria’s UTM Offshore to award FLNG FEED next month, CEO says
Image: UTM Offshore

SHI and JGC have extensive FLNG experience. The two firms have previously delivered the second FLNG for Petronas and they are working together on the FEED for the third Petronas’ FLNG as well.

The duo also partnered with Technip Energies on the Coral FLNG, owned by Eni, which should go online this year.

Still targeting FID in 2022

UTM Offshore’s chief told LNG Prime in December that the company was planning to take a final investment decision on the floating LNG producer in the fourth quarter of 2022.

This followed the signing of a deal by Abuja-based UTM Offshore with the African Export-Import Bank (Afreximbank) to secure up to $5 billion for the development of the FLNG project.

Rone confirmed on Wednesday that the company is still targeting the FID in the last quarter of this year.

Nigeria’s UTM Offshore to award FLNG FEED next month, CEO says
Julius Rone (Image: UTM Offshore)

As per the FLNG, the unit would source gas from an existing platform located in the Yoho field, which lies in Oil Mining Lease 104, offshore Nigeria.

Also, the unit would process associated gas currently flared in order to cut carbon emissions and monetize additional reserves for the domestic and global market.

The Nigerian government holds a 60 percent interest in the Yoho crude oil joint venture, through NNPC, while ExxonMobil’s MPN holds the remaining 40 percent and operates the development that started production back in 2003.

UTM Offshore plans to launch the FLNG project in 2026.

Most Popular

Venture Global to introduce gas to 14th Plaquemines liquefaction block

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce natural gas to the fourteenth liquefaction block at the Plaquemines LNG terminal in Louisiana as part of the plant’s commissioning process.

South Korea gets first LNG Canada cargo

The 174,000-cbm GasLog Glasgow, which is carrying the first liquefied natural gas cargo produced at the Shell-led LNG Canada facility in Kitimat, has arrived in Tongyeong, South Korea, according to shipping data.

Venture Global adds more liquefaction blocks to Plaquemines expansion

US LNG exporter Venture Global LNG has added four more liquefaction blocks to the proposed brownfield expansion of its Plaquemines LNG terminal in Louisiana.

More News Like This

Sabah to take stake in Petronas’ third FLNG

SMJ Energy, owned by the Sabah government, has signed a heads of agreement with Malaysian energy giant Petronas to take a 25 percent stake in the latter's third floating LNG production unit.

Samsung Heavy wins contract for Eni’s Coral Norte FLNG

South Korean shipbuilder Samsung Heavy has secured a preliminary contract for Eni's second FLNG project in Mozambique, Coral Norte (Coral North), according to shipbuilding sources.

Delfin inks new deals for US FLNG project, eyes FID later this year

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, is moving forward with the project by signing new deals with Siemens Energy, Samsung Heavy, and Black & Veatch.

Samsung Heavy cancels LNG carrier contract with Russia’s Zvezda

South Korean shipbuilding giant Samsung Heavy Industries has terminated contracts for 10 ice-class Arc7 LNG carriers and seven shuttle tankers with Russia's Zvezda.