Few years after the Floating Liquefied Natural Gas (FLNG) technology became feasible; the Department of Petroleum Resources (DPR), Monday, granted Nigeria’s first licence for the production of 176 million cubic feet per day (MMCFD) of gas.
FLNGs are water-based LNG, which uses modern technology in the development of offshore natural gas resources. With the initiative, natural gas would be produced, liquefied, stored and transferred. These activities take place on the sea before the gas is shipped directly to the market.
The Director/Chief Executive Officer, DPR, Sarki Auwalu, while presenting the licence in Abuja, explained that the milestone was a reinforcement of the promise and commitment of President Muhammadu Buhari to
Nigerians to promote indigenous participation in the oil and gas sector, and ensure that companies come to Nigeria and do business in an equitable way.
Stressing the need to stimulate the nation’s economy and create jobs for Nigerians.
Auwalu noted that the licence was a demonstration of the government’s resolve to harness safe and reliable technology for the development of the oil and gas industry.
The Federal Government had last year, put Nigeria’s total gas reserves at 203.16 trillion cubic feet (TCF), representing a marginal increase of 1.16tcf or 0.57 per cent from the 202tcf recorded in 2019.
The Minister of State for Petroleum Resources, Timipre Sylva, had also declared that aggressive effort would be made to unlock revenue and economic potential of gas even as the government had declared 2020 the Year of Gas.
Auwalu also assured that DPR will continue to create opportunities and enable business for companies by providing the regulatory tools of licences, permits and approvals for investors.
The Managing Director of UTM Offshore Ltd., Julius Rone, while receiving the licence promised to abide by the terms of issuance within the 24- month validity period of the LTE from the date of issue.
With this development, Nigeria may become the second African country that would leverage the technology after a $2billion facility being championed by the government of Equatorial Guinea and Ophir Energy and Golar LNG.
PFLNG Satu located in Kanowit gas field offshore Sarawak in Malaysia is reportedly the world’s first FLNG.