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UTM Offshore Limited, through its UTM FLNG project, has signed a landmark 15-year gas supply agreement that marks a significant milestone toward the development of Nigeria’s first indigenous floating liquefied natural gas (FLNG) facility.
The agreement, signed with a joint venture between the Nigerian National Petroleum Company Limited (NNPC Ltd) and Seplat Energy Producing Nigeria Unlimited, will supply 200 million standard cubic feet per day (approximately 5.7 million cubic metres) of gas from the Yoho field to the UTM FLNG project. The facility is designed to produce up to 1.8 million tonnes of LNG per year.
This gas supply deal removes a major hurdle for the $3 billion project, clearing the path for a Final Investment Decision (FID) expected in the fourth quarter of 2026. The project has faced previous delays but is now advancing steadily.
“We are thrilled to have secured this long-term gas supply agreement, which underscores our commitment to harnessing Nigeria’s abundant gas resources for economic growth, export revenue, and domestic energy needs,” said Julius D. Rone, Chairman/CEO of UTM Offshore. “This partnership with NNPC Ltd and Seplat Energy reinforces confidence in the UTM FLNG project as a game-changer for Nigeria’s gas monetization and industrialization drive.”
The UTM FLNG project is positioned to monetize stranded and associated gas, reduce gas flaring, create jobs, and boost Nigeria’s LNG export capacity while supplying liquefied petroleum gas (LPG) to the domestic market. It represents a key step in Nigeria’s ambition to become a major global LNG player and enhance energy security.