Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd., announced plans to leverage Nigeria’s extensive gas resources to transform the country’s power and industrial domains.

This revelation took place at the NNPC Towers in Abuja during the signing of a Shareholders Agreement (SHA) between NNPC Ltd., UTM Offshore (a local company), and the Delta State GovernmentGovernment on Tuesday.

The agreement focuses on establishing Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) facility.

Kyari said “In the next 2-3 years, we will use gas to bring about a revolution in our country. The outcomes will be clear on the table; there will be prosperity, and value will be created. Not just creating gas for export but progressing on all our initiatives of bringing gas into the domestic market.

“Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries and several other collateral value that this will create.”

Kyari emphasized the urgency of the FLNG project, highlighting Nigeria’s substantial but underused gas resources.

He underscored the nation’s shift toward monetizing these resources for both national and global benefit.

Kyari further noted the alignment of the FLNG Project with the Federal Government’s Decade of Gas Initiative and the President’s objective to establish a gas hub, aiming for enhanced value and Nigeria’s rightful prosperity.

Expressing NNPC Ltd.’s dedication to the initiative, Kyari highlighted the unique position of the FLNG project, being the first of its kind where the company is actively involved with a vested equity interest.

He said “More than this, there are several Floating LNGs that we are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to get it done. We are committed to delivering this project in time, on schedule and in the best possible cost,”

Earlier, Mr. Julius Rone, the Group Managing Director of UTM Offshore Limited, hailed the execution of the SHA as a significant stride in realizing Nigeria’s inaugural indigenous FLNG project.

He expressed gratitude to President Bola Tinubu for his dedication to developing the nation’s gas resources, notably showcased during the COP28 Conference in Dubai.

At the conference, President Tinubu pledged to eliminate gas flaring entirely and utilize Nigeria’s gas as a transition fuel, aligning with global efforts for cleaner energy and reducing methane emissions in oil and gas operations.

Rone also praised the GCEO of NNPC Ltd for his leadership and commitment in ensuring the development of Nigeria’s gas resources in accordance with the provisions outlined in the Petroleum Industry Act (PIA) of 2021.

Governor Sheriff Oborevwori of Delta State highlighted the state’s significant stake in Nigeria’s gas reserves, amounting to 40%.

He explained that the decision to hold an 8% equity in the FLNG project stemmed from their firm belief in its pivotal role in the national economy.

In addition to generating over 300,000 metric tonnes of LPG (cooking gas) specifically for the domestic market, the Governor emphasized the project’s wider benefits.

He noted that the FLNG initiative would aid in curbing environmental risks in the Niger Delta by reducing gas flaring.

Moreover, it is expected to create numerous job opportunities and facilitate the transition from kerosene and firewood to cleaner energy sources. This shift, in turn, would enhance the health and overall well-being of the populace.

The Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, stressed that the FLNG initiative would play a pivotal role in monetizing Nigeria’s gas resources, thereby bolstering the economy and achieving energy security.

Additionally, Mr. Olalekan Ogunleye, the Executive Vice President, Gas, Power & New Energy, commended the Federal Government’s commitment to leveraging gas as a catalyst for rapid economic growth.

He highlighted this commitment through initiatives like the Decade of Gas aimed at fostering a robust gas economy.

As for the FLNG facility, it is anticipated to yield between 1.81 to 2.72 metric tonnes per annum (mtpa) of gas.

The project’s equity structure involves NNPC Ltd., UTM Offshore, and the Delta State Government, holding stakes of 20%, 72%, and 8% respectively.