FROM GAS RESERVES TO REALITY: THE JOURNEY TO MAKING NIGERIA'S FLNG AMBITIONS, FLY.

With a combined production target of 4 million tonnes of LNG annually by 2029, Nigeria is looking to unlock its shallow-water gas reserves. But what makes these projects important, and what must happen before the ambition becomes reality? Can Nigeria even turn its vast gas reserves into floating LNG success?

Traditionally, producing liquefied natural gas requires transporting gas through pipelines to large processing facilities on land. These facilities can be expensive to build and may require extensive infrastructure. However, floating LNG offers a different approach.

An FLNG vessel is essentially a floating gas-processing plant. It can receive natural gas from offshore fields, process it, cool it into liquid form and prepare it for transportation by specialised LNG carriers. By bringing processing facilities closer to offshore gas reserves, FLNG can help unlock resources that might otherwise remain undeveloped because of infrastructure costs or logistical challenges.

For Nigeria, this could open new opportunities to monetise offshore gas, attract investment and strengthen its position in the global LNG market.

The First Project, UTM Energy and the Yoho Field is one of the two projects highlighted by NNPC as the proposed 2.8-million-tonne-per-year FLNG project, which aims to utilise gas from the Yoho field in Oil Mining Lease (OML) 104.

The field is reported to hold approximately 2.2 trillion cubic feet (Tcf) of gas resources.

A significant development came when Seplat and UTM signed a 15-year gas sales agreement covering 200 million standard cubic feet of gas per day. The agreement is an important step towards establishing a reliable supply of feed gas for the proposed facility. However, important questions remain. At the time of the report, the project still faced uncertainty over financing and the identification of a confirmed LNG buyer.

These issues matter because a gas project needs more than reserves. It needs funding, reliable gas supply, committed buyers and the infrastructure to deliver the product to market.

NNPC holds a 20% interest in the project, giving the national oil company a direct stake in its potential success.

However, the second project is an opportunity still shrouded in mystery. While the first project has a clearer identity, the second development remains less defined.

NNPC previously signed a project development agreement with Golar LNG in 2024. Discussions involved assessing shallow-water gas fields for a potential project capable of supplying up to 500 million cubic feet of gas per day. However, details of the project's progress have remained limited.

Other companies are also pursuing FLNG opportunities in Nigeria. Wison New Energies, for example, has been working on pre-FEED contracts for two proposed 3-million-tonne-per-year FLNG vessels involving Nigerian gas resources. One of these initiatives involves Ace Gas and Transoceanic Gas & Power, which have claimed access to substantial gas reserves across several oil mining leases.

These developments point to growing interest in Nigeria's offshore gas potential. Nevertheless, proposed capacity and reported access to reserves must still translate into bankable projects, secured financing and actual production. The big question is no longer simply how much gas Nigeria has, but how quickly that gas can be converted into commercially viable projects.

The big question still persists, 'What must happen before the projects take off?

For Nigeria's FLNG ambitions to become reality, several critical milestones must be achieved.

First, investors must be satisfied that the projects are commercially viable before committing the full capital required for construction.

Secondly, developers need to secure funding for vessels, offshore facilities, gas supply infrastructure and related operations.

Thirdly, gas reserves must be technically and commercially recoverable, with sufficient production to support the facilities over time.

Fourthly, long-term or otherwise dependable sales arrangements must continue to be present, to ensure that the revenue certainty needed to support investment continues to be on ground.

Finally, engineering, construction, safety, environmental approvals and operational planning must align with the proposed development schedules.

Meeting these requirements will determine whether the projects advance from announcements and planning into construction and eventual production.

Nigeria's FLNG ambitions create opportunities extending far beyond the companies developing the vessels. Engineering firms, equipment suppliers, marine service providers, fabrication yards, logistics companies, technical consultants, financial institutions and local service businesses could all find opportunities across the project value chain.

However, opportunities are only valuable when the right businesses can find one another, establish credibility and build productive relationships.

As an oil and gas ecosystem platform, CONNECTIZE can help improve industry visibility, accessibility and connections by bringing companies, expertise and potential business opportunities closer together.

For a local engineering company seeking a partnership, a supplier looking to reach project developers or a service provider hoping to participate in offshore gas developments, better industry connections can make a meaningful difference.

As Nigeria moves towards a potentially important phase of FLNG development, an interconnected oil and gas ecosystem could help businesses identify opportunities, showcase their capabilities and build relationships that support project delivery.

NNPC's target of securing investment decisions for two FLNG projects within 12 months represents an important ambition for Nigeria's gas industry. If successfully developed, the projects could help unlock offshore gas resources, expand LNG production and create opportunities across the energy value chain.

But the real test lies in execution which basically involves securing investment, confirming gas supply, attracting buyers and delivering projects on schedule.

Nigeria undoubtedly, has the gas potential. The next challenge remains turning that potential into production, revenue and wider industry growth. And as the race to unlock that value gathers momentum, CONNECTIZE is focused on connecting the companies, capabilities and opportunities that can help move Nigeria's oil and gas industry forward.