UTM FLNG Ltd, the owner of Nigeria’s first indigenous Floating Liquefied Natural Gas (FLNG) facility, has officially signed the United Nations Global Compact (UNGC), committing to its Ten Principles on human rights, labor, the environment, and anti-corruption.
The agreement, signed by UTM Group Managing Director Dr. Julius Rone, OFR, and Ms. Naomi Nwokolo, CEO & Executive Director of UNGC Nigeria, was formalized during a ceremony at UTM Towers on Wednesday.
The FLNG plant, set to be located 60 kilometers offshore Akwa Ibom State in Nigeria’s Niger Delta region, is projected to produce 2.8 million tons per annum (MTPA) of liquefied natural gas (LNG), liquefied petroleum gas (LPG), and condensate.
The facility is scheduled for completion in 2028, with production beginning in 2029.
This development follows the Federal Government of Nigeria’s issuance of a License to Construct (LTC) for the FLNG plant in September 2024. The facility will process gas from the OML 104 Yoho Field, a milestone for Nigeria’s energy sector.
Commitment to Sustainability and Economic Growth
By aligning with the UNGC, UTM FLNG has pledged to incorporate global best practices, uphold transparency, and support the United Nations Sustainable Development Goals (SDGs). The company highlighted its focus on goals including gender equality (SDG 5), decent work and economic growth (SDG 8), climate action (SDG 13), and life below water (SDG 14).
Dr. Rone emphasized that UTM’s adoption of the UNGC principles reinforces its dedication to ensuring accountability and fostering collaboration for sustainable development.
“Our participation in the UNGC reflects our commitment to integrating these principles into our strategies, operations, and governance while advancing Nigeria’s socio-economic transformation,” he said.
Tackling Environmental and Economic Challenges
The FLNG facility is expected to create approximately 7,000 jobs, address deforestation, and improve socio-economic conditions by reducing the environmental hazards associated with gas flaring.
The project also aims to enhance value creation along the LPG supply chain, providing affordable energy solutions and promoting economic opportunities for Nigerians.
Global Compact Integration
As part of its participation in the UNGC, UTM FLNG is required to submit an annual Communication on Progress (CoP) detailing its efforts to implement the Compact’s Ten Principles. This process is intended to ensure measurable progress and transparency while aligning business operations with global standards.
The UNGC initiative, a cornerstone of sustainable business practices, seeks to unite companies globally to accelerate action toward a more equitable and environmentally friendly world. By joining this initiative, UTM FLNG underscores its role in driving impactful, sustainable growth within Nigeria’s energy sector.
