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Nigeria’s UTM Offshore secured a critical 15-year gas supply agreement on Tuesday, establishing the long-term feed gas framework needed to advance its $3 billion floating liquefied natural gas (FLNG) project.
Under the new deal, a joint venture between the Nigerian National Petroleum Corporation (NNPC) Limited and Seplat Energy Producing Nigeria Unlimited will supply 200 million standard cubic feet of gas per day to the facility.
UTM Offshore Chief Executive Julius Rone announced that the agreement clears a major hurdle, providing the necessary financial and operational certainty to position the project for a final investment decision in the fourth quarter of 2026.
The innovative project aims to produce 1.8 million tonnes of LNG annually by sourcing gas from the Yoho field.
UTM Offshore holds a 72 per cent stake in the venture, while NNPCL and the Delta State government hold 20 per cent and 8 per cent, respectively.
The Nigerian government granted this project the country’s first-ever floating LNG export licence in 2024 as part of an aggressive strategy to commercialise its massive but historically stranded gas reserves.
While Nigeria commands some of Africa’s largest gas deposits, funding constraints, regulatory uncertainty, and infrastructure gaps have long throttled its export capabilities.
This agreement marks a significant step forward for the country’s energy sector, building on the front-end engineering and design work that engineering firms JGC and Technip Energies completed back in 2023.
