Shittu Oluwadamilola - Lagos
Nigeria’s gas sector is poised for a landmark development as the Chief Executive Officer of UTM Offshore, Dr. Julius Rone, has confirmed that construction of the nation’s first Floating Liquefied Natural Gas (FLNG) facility will begin in 2026.
Rone made the announcement in Lagos while receiving the Investor of the Year honour at the 2026 Sun Newspaper Awards. He described the project as a defining milestone in Nigeria’s energy journey.
According to him, the UTM Offshore FLNG project has now moved into its full execution stage after years of preparation, funding arrangements and regulatory approvals.
“We are entering the construction phase this year,” Rone stated, signalling the official takeoff of the long-anticipated development.
He credited the achievement to an improved investment climate under President Bola Ahmed Tinubu’s administration, noting that policy incentives introduced through the Renewed Hope Agenda have encouraged substantial private sector investment in the gas industry.
“The Tinubu administration has intentionally created a supportive environment for investors, especially within the gas sector,” he said. “Clear policies and targeted incentives have strengthened investor confidence and unlocked capital for long-term projects.”
The FLNG facility will be situated at the Yoho Field, Oil Mining Lease (OML) 104, about 60 kilometres offshore in the Niger Delta. It is expected to produce 1.5 million tonnes of Liquefied Natural Gas (LNG) annually for export and 300,000 tonnes of Liquefied Petroleum Gas (LPG) yearly for the domestic market.
Dr. Julius Rone wins Investor of the Year award at the 2026 Sun Newspaper Awards,
With confirmed gas reserves of 2.2 trillion cubic feet, the project is projected to operate for at least 20 years. Rone emphasised that a major objective is to increase local LPG supply and significantly cut Nigeria’s reliance on imported cooking gas.
“This project alone will eliminate at least 25 per cent of Nigeria’s LPG imports,” he said. “We will deliver no less than 300,000 metric tonnes annually to the domestic market, moving the country closer to self-sufficiency.”
Beyond strengthening energy security, the FLNG project is expected to create thousands of jobs, boost government revenues and contribute significantly to economic growth.
The financing structure reflects strong international backing. Afreximbank is serving as the lead financier, securing $2 billion for Phase One and an additional $3 billion for Phase Two, bringing total funding to $5 billion.
Strategic partnerships have also been secured with global engineering firms including JGC Holdings, Technip Energies and KBR. All required environmental and social impact assessments have been completed.
Project Adviser and board member of UTM FLNG Ltd, Engr. Sadeeq Mai-Bornu, described the award as well deserved and expressed optimism that the project would pave the way for additional FLNG developments in Nigeria.
“As the country’s first FLNG initiative, its success will set the stage for future projects. This recognition affirms the company’s vision, and expectations are understandably high,” he said.
In his remarks, the Managing Director and Editor-in-Chief of Sun Publishing Limited, Onuoha Ukeh, commended Rone and other award recipients as exceptional achievers whose investments and foresight continue to drive national progress beyond the scope of government policy initiatives.
