UTM FLNG SECURES 15-YEAR GAS SUPPLY DEAL FOR LANDMARK NIGERIAN PROJECT

UTM Offshore Limited has signed a major 15-year Wet Gas Sale and Purchase Agreement, clearing a critical hurdle for its $3 billion floating liquefied natural gas (FLNG) project off Nigeria’s coast.

The deal, with a joint venture between the Nigerian National Petroleum Company Limited (NNPC) and Seplat Energy, will supply 200 million standard cubic feet of gas per day from the Yoho field to the 1.8 million tonnes per annum FLNG facility.

The agreement paves the way for a final investment decision expected in the fourth quarter of 2026. Engineering and pre-construction activities have already been completed, positioning the project as Nigeria’s first indigenous FLNG development.

UTM FLNG aims to monetise stranded gas resources, boost domestic LNG supply, and create significant economic value through exports and local utilisation. The project is expected to enhance energy security and generate substantial revenue for Nigeria.

Industry stakeholders hailed the milestone as a boost for Nigeria’s gas sector, demonstrating growing private sector confidence in large-scale energy infrastructure despite previous delays. The FLNG vessel will be located in deepwater, enabling efficient gas processing and liquefaction.

This development aligns with Nigeria’s broader strategy to harness its vast gas reserves for economic diversification and industrial growth.