Meet Julius Rone the Gas Kingpin behind Nigeria's First Floating Liquified Natural Gas Plant

Versatile businessman Julius Rone,has just loudly stamped his feet with authority on Nigeria's gas sector as a king.His company UTM offshore,has secured the licence to build NIgeria's first floating liquefied natural gas (LNG) facility. This ambitious project marks a significant milestone in Nigeria’s quest to enhance energy infrastructure and solidify its position as a key player in the global LNG market.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority issued the license-to-construct to the company for an LNG project estimated to produce 2.8 million metric tons per year. “This marks a significant milestone and aligns with the gas expansion ambitions of the government” as contained in the Petroleum Industry Act (PIA) 2021",Ahmed Farouk,NMDPRA boss,alluded.

The project is in line with the nation’s aspiration to tap its 206 trillion cubic feet of proven gas reserves; most of which are currently either flared or re-injected into wells.

Ahmed said UTM was initially granted a license to build 1.2 million tons per annum facility in 2019, but it was upgraded to 2.8 million tons “because of increased LNG demand in the market.

The plant, located in offshore Akwa Ibom state in the oil-rich Niger Delta, is expected to be inaugurated in 2028, with first-gas a year later. It will produce LNG, petroleum gas and condensate.

On his path UTM Chief Executive Officer, Julius Rone,said  "the company had already signed a memorandum of understanding with the African Export-Import Bank in 2021 to raise as much as $2 billion for the project, and the bank has received a first-level approval to invest $350 million in the project.

He said the company had also concluded contracts with Japan’s JGC Corp. and Houston-based KBR Inc. to design the project, with Vitol Group having an off-take agreement for LNG produced at the facility.Also, last year, the company signed a deal that saw state-owned Nigerian National Petroleum Co. Ltd. take a 20% stake in the project".

 

“It is a stranded gas that can only be monetized through a floating LNG technology. It will only add to Seplat’s balance sheet to say they have a ready-made buyer for a gas they have not developed.”

 

According to him, “This achievement is not just a License to Construct; it is a testament to the collaborative spirit and commitment to excellence shared by our teams. The guidance and thorough review process by NMDPRA have been instrumental in navigating the complexities of this endeavour, ensuring compliance with industry standards and fostering a productive partnership.”

The UTM FLNG boss stated that the journey toward this milestone began with concept studies in 2019, followed by the pre-FEED phase in June 2021 and the successful completion of the FEED phase in October 2023.

He said, “UTM Offshore Limited, the main sponsor of the UTM FLNG Project, signed the Head of Terms with NNPC Limited in July 2023 and finalized the Shareholders Agreement with NNPC Ltd and the Delta State Government in December 2023.

“As UTM FLNG Limited moves forward into the Engineering, Procurement, and Construction (EPC) phase, the company remains committed to conducting operations with integrity, sustainability and respect for the communities and environment in which it operates.”

Expressing profound gratitude to President Tinubu, for his “unwavering support to the gas sector and the UTM FLNG project in particular,  Rone stated that the project aligns with the President’s promise to develop Nigerian gas resources as a source of sustainable energy and economic development for the country.

The UTM boss acknowledged the collaborative efforts of the NMDPRA and the dedication of all stakeholders involved in bringing this project to fruition. He also thanked the GCEO of the Nigeria National Petroleum Company Limited (NNPCL), Mallam Mele Kyari for the support from NNPCL for believing in UTM Offshore to deliver on the project.

 

Profile of Julius Rone

Rone is a seasoned administrator and Industrialist with vast experience spanning over a decade in both the public & private sectors of the Nigerian economy, as a major player in the oil and gas space.

 

He worked as a protocol assistant at the Oil Mineral Producing Areas Development Commission (OMPADEC) from 1995 to 2000 and in the year 2000 to 2008 he worked with the Niger Delta Development Commission (NDDC) as the protocol assistant to the Chairman.

From 2008 till date, he has been the group managing director of UTM Group of Companies. Rone came on board as Charge De’ Affairs of the UTM Group of companies, viz: UTM Offshore Limited; UTM FLNG Limited; UTM Energy Limited.

Also, he worked with UTM Dredging Limited; UTM Engineering and Construction Limited: UTM Properties Limited; UTM Logistics and Marine Services Limited; MWS Allied Services Limited; Water Petroleum Limited; SBM Limited; UTM Ghana Limited; and UTM-CTK Ghana Limited.

In 1986, Rone had his First School leaving certificate from Mowoe Primary School, Warri, Delta State. He then proceeded to Uwangue College, Warri, Delta State, where he obtained his Senior School leaving certificate in 1992.

He is an alumnus of the Obafemi Awolowo University, Ile – Ife and the University of Calabar where he attained his advanced diploma and Post Graduate Diploma in Business Administration respectively.

 

 

Rone holds membership portfolios in the Institute of Directors (IoD), American Society of Administrative Professionals (ASAP), American Management Association (AMA), International Association of Administrative Professionals (IAAP) USA, Association of Associate Executives (AAE) among others.

The business mogul was born on June 25, 1968 into the family of Chief S. S. Rone, the Obazuaye of Warri Kingdom, in Delta State of Nigeria.

UTM Offshore

State-owned oil company Nigerian National Petroleum (NNPC) entered heads of agreement with UTM Offshore to purchase a 20 percent equity stake in the project in July 2023.

In December 2023, UTM Offshore, the Delta State Government, and NNPCL signed a shareholder agreement to jointly develop the project.

The project will be owned by UTM FLNG (72 percent), a special-purpose vehicle formed for the development of the project by UTM Offshore, NNPC (20 percent) and Delta State Government (8percent).

The project is expected to produce 1.5 million tonnes per annum of liquified natural gas (LNG) for export markets and 300,000 tonnes of LPG a year for domestic consumption and some quantities of condensate.

Location details

The UTM FLNG facility is being developed at the Yoho field at a water depth of 64m.

The Yoho field is situated within oil mining lease (OML) 104, approximately 60km from shore. It is owned by ExxonMobil (40percent, operator) and NNPC (60 percent) and commenced production in 2003.The project will cost $5 billion.