Summit projects rapid growth in gas sector, reduction in domestic prices


A leading Nigeria gas company, UTM Offshore Ltd, owners of the first Floating Liquified Natural Gas (FLNG) company in Nigeria, has said that ‘Decade of Gas Policy’ of the Federal Government has further provided direction and clarity for investors in the gas industry.

The Managing Director and Chief Executive Officer (CEO) of UTM Offshore Ltd, Dr. Julius Rone made this known at the weekend in Abuja while speaking during the just concluded Nigeria International Energy Summit 2024.

Rone commended President Bola Ahmed Tinubu for encouraging private investment in developing the nation’s gas resources.

He noted that President Tinubu’s commitment towards the Decade of Gas policy has further enhanced private sector participation and boosted investors’ confidence.

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This, according to him, holds greater prospects for rapid growth in gas production, exportation as well as marketing at affordable prices for domestic and industrial use in the country.

The CEO emphasised that Nigeria, partnering with other industry stakeholders can develop the technology needed to boost productivity in the gas sector, while indicating that the FID for floating LNG in Nigeria will be announced in the second quarter of this year.

“The government has encouraged private investment in developing our gas resources and the ‘Decade of Gas’ policy has provided clarity to investors. Currently, there are only three floating LNGs in Africa, all foreign-owned. We can develop such technology but need regulators, government and frameworks”, the UTM boss stated at the Summit.

Dr. Rone stressed that gas resource is a key driver of economic growth, mass employment, business and commercial opportunities, industrialization and overall development for Nigeria with nearly 209 trillion cubic feet (TCF) of natural gas reserves which ranks as the 9th highest in the world.

Other stakeholders at the Summit also stressed the need for more private sector participation and clear regulatory framework to fast track gas projects. This, they insist, will enhance production, expand export capacity, attract more Foreign Direct Investment, increase local production and push down the cost of gas for domestic, vehicular and commercial uses in the country.

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