…By Dorcas Funmi for TDPel Media.
Meeting between President Tinubu and UTM FLNG Ltd: A Boost for Nigeria’s Energy Sector
The recent meeting between President Bola Ahmed Tinubu and officials of UTM FLNG Ltd.
has revealed significant details that hold great promise for Nigeria’s energy sector.
Naija News initially reported on the President’s meeting with Julius Rone, the Group Managing Director of UTM FLNG Ltd, and his team at the State House in Abuja.
President Tinubu’s Commitment to a Conducive Environment for Investors
Following the meeting, Julius Rone spoke with State House Correspondents in Abuja and shared some key highlights.
Rone expressed President Tinubu’s assurance to genuine local and foreign investors regarding his administration’s commitment to providing a conducive environment for their ventures.
Support for a $5bn Floating Liquefied Natural Gas Project
One notable outcome of the meeting was President Tinubu’s endorsement of a $5bn floating Liquefied Natural Gas (LNG) project.
This project aims to cater to 40% of the nation’s gas needs by the fourth quarter of 2026.
Rone disclosed that the implementation of the multi-floating LNGs is made possible through a $5bn loan from AFRIEXIM Bank.
This financial support helps eliminate financing obstacles in preparation for the project’s launch in 2026.
Focus on Job Creation and Foreign Investment
President Tinubu has directed UTM FLNG Ltd, Technip Energies of France, and JGC Corporation of Japan to prioritize the project and collaborate closely.
The President emphasized the importance of this venture in generating employment opportunities, with an expected minimum of 7,000 direct and indirect jobs within the country.
Rone revealed that the collaboration between Technip Energies, JGC Corporation, and UTM FLNG Ltd would involve a substantial investment of approximately $5bn in the floating energies sector.
Additionally, the NNPC Ltd will contribute to the partnership.
The financing aspect is being handled by Afrexim bank.
Enhancing Local Content and Training Initiatives
Julius Rone highlighted the importance of incorporating local content in the project.
He mentioned that a significant number of Nigerians are already undergoing training to develop the necessary skills for handling the various equipment associated with the project.
This commitment to local content ensures that Nigerians benefit from job opportunities and skills development in the energy sector.
Future Delivery and Marketing Strategies
Upon completion of the project, Julius Rone stated that plants would be established for the delivery and marketing of the products to customers.
These plants will play a vital role in ensuring efficient distribution and meeting the demands of customers in the region.
The meeting between President Tinubu and officials of UTM FLNG Ltd signifies a significant development for Nigeria’s energy sector.
With the President’s support, the implementation of the $5bn floating LNG project is set to drive economic growth, job creation, and enhance the nation’s energy infrastructure.