UTM Offshore Limited has secured a 15-year gas supply agreement for its proposed $3 billion Floating Liquefied Natural Gas (FLNG) project.
The agreement provides the long-term feed gas required to support the project’s commercial viability and financing, removing one of the key hurdles that had delayed progress on the offshore LNG development.
Under the arrangement, a joint venture comprising NNPC Exploration and Production Limited (NEPL) and Seplat Energy Producing Nigeria Unlimited (SEPNU) will supply 200 million standard cubic feet of natural gas per day to the FLNG facility.
The gas will be sourced from the Yoho field, with the floating plant designed to produce approximately 1.8 million metric tonnes of liquefied natural gas annually.
Speaking at the signing ceremony in Abuja, UTM Offshore Chairman and Chief Executive Officer Julius Rone described the agreement as a critical step in advancing the project, noting that it provides greater certainty for investors, lenders and prospective LNG buyers ahead of the anticipated final investment decision in the fourth quarter of 2026.
The FLNG project is structured as a joint venture in which UTM Offshore holds a 72 percent stake, NNPC owns 20 percent, while the Delta State Government retains the remaining 8 percent interest.
Nigeria granted the project the country’s first licence for a floating LNG export facility in 2024 as part of broader efforts to commercialise stranded natural gas resources, diversify export earnings and strengthen its position in the global liquefied natural gas market.
Engineering work on the project has already reached an advanced stage. Front-End Engineering and Design (FEED) was completed by JGC Corporation and Technip Energies, positioning the project for construction once investment approval is secured.
Nigeria possesses one of Africa’s largest proven natural gas reserves, estimated at more than 200 trillion cubic feet, yet much of the resource remains undeveloped because of infrastructure limitations, financing constraints and regulatory challenges.
Projects such as UTM’s FLNG initiative are expected to unlock offshore gas reserves that would otherwise remain stranded while boosting export capacity and supporting economic growth.
If the final investment decision proceeds as planned, the UTM FLNG project will become one of Nigeria’s landmark gas developments, expanding the country’s LNG production capacity and reinforcing its ambition to play a larger role in the global energy transition through increased natural gas exports.
