Nigerian gas tycoon Julius Rone says $5 billion FLNG project will start construction in 2026

UTM Offshore Chief Executive Officer Julius Rone says construction of Nigeria’s first Floating Liquefied Natural Gas facility will begin in 2026, marking a defining step in the country’s push to unlock its vast gas reserves.

Rone announced in Lagos while receiving the Investor of the Year honour at the 2026 Sun Newspaper Awards. Standing before industry leaders and policymakers, he described the long-delayed project as a turning point for Nigeria’s energy ambitions.

“This year, we are entering the construction phase,” Rone said, signalling that the UTM Offshore FLNG project has moved from years of planning and regulatory processes into full execution.

The facility will be sited at the Yoho Field, Oil Mining Lease 104, about 60 kilometres off the Niger Delta coast. Once operational, it is expected to produce 1.5 million tonnes of liquefied natural gas annually for export markets. It will also deliver 300,000 tonnes of liquefied petroleum gas each year for domestic use.

Backed by an estimated 2.2 trillion cubic feet of proven gas reserves, the project is designed to operate for at least 20 years. Rone said expanding access to locally produced cooking gas is central to the company’s strategy.

He noted that the plant’s LPG output could eliminate at least one quarter of Nigeria’s current LPG imports. “We will supply no less than 300,000 metric tonnes annually to the domestic market,” he said. “Rather than importing, Nigeria will move towards self-sufficiency.”

Nigeria holds some of Africa’s largest natural gas reserves, yet much of it remains underdeveloped. Industry analysts say floating LNG technology offers a faster route to market, particularly for offshore fields where building onshore plants may prove costly or complex.

Rone credited recent policy reforms under President Bola Ahmed Tinubu for helping create a more predictable climate for investors. He said clearer guidelines and targeted incentives have encouraged long-term capital commitments in the gas sector.

The scale of financing reflects that confidence. Afreximbank is leading the funding arrangement, mobilising 2 billion dollars for Phase One. An additional 3 billion dollars has been secured for Phase Two, bringing total project financing to 5 billion dollars.

Global engineering firms JGC Holdings, Technip Energies and KBR are among the strategic partners supporting the development. The company says environmental and social impact assessments have been completed, clearing key regulatory hurdles.

Beyond gas exports and domestic supply, Rone said the project will generate thousands of jobs during construction and operation. He added that new revenue streams from gas exports could strengthen public finances at a time when Nigeria is seeking to diversify away from crude oil dependence.

Engr. Sadeeq Mai Bornu, project adviser and board member of UTM FLNG Ltd, described the recognition at the awards ceremony as timely. He said successful delivery of the project could open the door to additional floating LNG investments along Nigeria’s coastline.

Sun Publishing Limited Managing Director and Editor-in-Chief Onuoha Ukeh praised Rone and other honorees as business leaders whose investments and resilience continue to shape the country’s economic trajectory. (Billionaires Africa)