UTM Offshore signs an agreement with Afreximbank for FLNG project financing

Afreximbank bank will part-finance activities designed to progress the first Floating Liquefied Natural Gas (FLNG) project in Nigeria being developed by UTM Offshore Limited.

As per the deal, a continuation of the support of Afreximbank, which has been leading UTM’s fundraising efforts to secure the necessary investments required for the project’s implementation.

In line with Nigeria’s Petroleum Industry Act (PIA) and global energy transition efforts, UTM Offshore Limited is to carry out the FLNG project in partnership with the Nigerian National Petroleum Corporation (NNPC) and its affiliate, LNG Investment Management Services.

UTM is undertaking the development, design, and construction of an FLNG facility with a Liquefied Natural Gas (LNG) nameplate production capacity of 1.2 million metric tons per annum and a storage capacity of 200,000 cubic meters, as well as ancillary facilities to be located 60-kilometre from the shore of Akwa Ibom State.

The project represents “first” in the African FLNG sector for UTM’s ownership as the intervention aligns with Afreximbank’s strategic aim of advancing activities that boast strong climate finance credentials and accelerate the development of energy transition solutions in line with the reduction of carbon emissions prescribed at COP26.