NNPCL, UTMOL sign agreement to push down cost of cooking gas

<p>The Nigerian National Petroleum Company (NNPC) Ltd. and UTM Offshore Ltd., on Thursday signed the Heads of Terms Agreement to provide clean energy to Nigerians through the UTM FLNG Project.</p>, <p>The signing ceremony which took place at the NNPCL corporate headquarters in Abuja, allows 20 per cent equity contribution of the NNPCL in the UTM FLNG Project.</p>, <p>The agreement is a significant step towards growing the gas market and making cooking gas more accessible and affordable for consumers.</p>, <p>Mr Julius Rone, Group Managing Director, UTM Offshore Ltd., promoter of the project, said the signing, joint effort not only aim to bring down and stabilise the price of cooking gas, but also has the potential to create a healthier environment.</p>, <p>According to him, it will bring investment opportunities and numerous direct and indirect employment opportunities for Nigerians.</p>, <p>He noted that it was encouraging to see such initiatives that promote the well-being of the people and the economy.</p>, <p>The front-end engineering design, FEED, is already on in Lagos, Yokohama and Paris with JGC, Technip and indigenous companies acting as consultants.</p>, <p>Rone, who spoke on how important that stage of the project is, noted that it would enable UTMOL to have an idea about the project cost, prepare a full budget and work towards the FID, while the stage cannot be skipped.</p>, <p>“Final Investment Decision (FID) is expected to be taken in the fourth quarter of 2023 with planned project start up in the fourth quarter of 2026.</p>, <p>“When completed, it will produce 1.7mmtpa of LNG and 300,000 metric tons of LPG (cooking gas) which will be fully dedicated to the domestic market.</p>, <p>“The project is estimated to provide direct employment for 3,000 Nigerians and another indirect employment for an additional 4,000 people.</p>, <p>“The LPG produced will help bring down the price of cooking gas, improve the socioe-conomic wellbeing of Nigerians, reduce deforestation and attendant carbon emission,” Rone ad