In a significant development for the oil and gas sector in Nigeria, the government of Cross River State has struck a deal with Nigerian firm UTM Offshore Limited to establish the onshore operational support base for a floating liquefied natural gas (LNG) project. The state has been selected as the site for the base due to its proximity to the location of the plant, which is being constructed by Japanese contractor Messrs JGC Holdings Corporation.
The decision to choose Cross River State as the logistics base has been lauded by Governor Bassey Otu, who sees it as an opportunity to boost job creation and attract Foreign Direct Investment. During a visit from UTM’s managing director, Dr. Julius Rone, Governor Otu expressed his excitement, stating that the establishment of the base will provide thousands of job opportunities and tap into the state’s rich gas resources.
With a focus on youth employment and economic growth, Governor Otu emphasized the goal of doubling the state’s Gross Domestic Product and increasing internally generated revenue over the next four years. He encouraged UTM Offshore to take advantage of the designated blocs for exploration in addition to their offshore operations.
In terms of security, Governor Otu assured UTM Offshore and their Japanese and German partners of maximum support, emphasizing Cross River State’s commitment to creating a business-friendly environment. Governor Otu highlighted the dangers of gas flaring and commended UTM Offshore for their green operations, which align with the state’s efforts to protect the environment and promote sustainable practices.
Dr. Julius Rone, Managing Director of UTM Offshore, explained that the delegation was in Cross River State to assess the site for the onshore operations support base. The base will provide support for the offshore floating LNG project, which will be anchored in Akwa Ibom State near the Yoho Platform. When completed, the plant is expected to produce 1.5 million tonnes of LNG for export and 300,000 metric tonnes of LPG for the domestic market, in addition to some condensate.
The partnership between Cross River State and UTM Offshore marks a significant milestone in the development of Nigeria’s oil and gas industry. It not only promises job creation and economic growth for the state but also demonstrates the commitment to sustainable practices and environmental protection. With the potential for increased investment in the sector, Cross River State is positioning itself as a key player in Nigeria’s journey towards energy independence and economic prosperity.
